Bank of England's Mark Carney sees potential in Libra's “free and instant” payments but says regulators will not give it an "open door"

The Bank of England governor Mark Carney says he is open-minded about Facebook's Libra token but warned mass adoption would force it "to be subject to the highest standards of regulation," the Financial Times writes.

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Carney notes a double-edged sword, saying he sees the potential utility of Facebook's global digital currency, especially in countries where moving money is expensive and slow, including the US, as it could provide people with a “free and instant” payments solution. However, should Libra subsequently become successful, only the toughest regulation would be appropriate, he said, with a particular focus on preventing money laundering, hacks, and enforcing user privacy.

Going forward, the BoE will pay close attention to Facebook’s proposal and will coordinate efforts with the G7, the Bank of International Settlements, the Financial Stability Board and the IMF. Carney concluded Libra would not launch with an “open door” from regulators.

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Isabel is The Block's London and European reporter. She previously reported for Reuters in Madrid and London, following on from her time as a freelance journalist for the Guardian and the New York Times. She has a Bachelors in War Studies from King’s College London and a Master of Philosophy from the University of Oxford. Conflict of Interest: Edward Woodford, the CEO of SeedCX, is Isabel's brother. She does not report on any issues related to Seed or advise other authors in any regard.