Libra

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”

June 19, 2019, 8:26AM EDT

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.

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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