Mark Carney on the Start of Facebook's Coin: “Libra’s Fundamentals Need to be Absolutely Flawless”

Mark Carney On The Start Of Facebook’s Coin: “Libra’s Fundamentals Need To Be Absolutely Flawless”


  • According to reports, Carney is currently consulting different experts on whether or not to allow “new payment providers” to hold reserves at the BOE?
  • A number of policy makers from all over the world have expressed their concerns over Libra’s potential monopolization of the world’s digital finance data.

In an interview given to a respected crypto media outlet a couple of days back, Bank of Governor Mark Carney stated that in order for Facebook Inc.’s stablecoin offering to succeed, the asset’s underlying framework needs to be absolutely ‘bulletproof from day one’.

On the Subject, Carney went on to elaborate:

“If it’s successful it becomes systemic because it would involve a very large number of users and if you’re a systemic payments system it’s ‘five-sigma. You have to be on all the time, you can’t have teething issues, you can’t have people losing money out of their wallets. The standards are in a different zip code, to use the American term, to the standards in other technologies.’’

The governor’s words came at a conference during which Federal Reserve Chairman Jerome Powell announced that ‘Libra was the cause of a lot of concern in Washington right now’.

Powell made it clear that a number of issues pertaining to ‘privacy, money laundering, consumer protection and financial stability’ currently associated with the much-hyped stablecoin are scaring policy makers from all over the world.

For example, legislators in France, Australia have issued circulars recently highlighting the potential threat Libra poses to the privacy/security of consumer finance data all over the globe.

As things stand, a group of seven central banks (including Carney’s BOE) have set up committees to examine FBs upcoming crypto project and assess its intrinsic risks and opportunities.

 

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