Bank of England Governor on Libra as a solution to financial problems

Bank of England Governor Mark Carney said people need to recognize the issues Facebook is trying to solve with Libra, regardless of the project's potential drawbacks. Carney commented on the Financial Stability Report press conference as seen on the Bank of England's YouTube channel on July 11.

Carney said:

"It's too expensive to make domestic payments. It's way too slow, and it hurts consumers and businesses. It suffocates innovation and it's too expensive to send money on borders and that There are major financial inclusion problems associated with it and costs associated with it, so, while we are trying to solve all these problems, we must certainly recognize the problem they are trying to solve, and if that is not, we can better answer what else it is. "

However, Carney also believes that because of the massive scale of the project, Libra must be almost perfect from the beginning ̵[ads1]1; at least from an economic safety point of view – for it to be released at all.

" It's either successful or it's not. If successful, it will be systematic because it would involve a very large number of users. And if you're a systemic payment system, it's 5-sigma. You have to be all the time. You can't have problems with your teeth. You can't make people lose money out of your wallet … The standard is in another postal code – to use the American term. "

Carney continued to list a number of other problematic areas that Libra needs to address. Basic risk, rebalancing risk, underlying asset management, money laundering, and counter-terrorism are all areas he believes need to be adequately addressed before launch. [19659002] As previously reported by Cointelegraph, the US Federal Reserve Chair Jerome Powell recently made similar comments about Libra, indicating that it needs to reach a high bar before the cryptocurrency project can continue, but in a previous statement, Powell noted that the Federal Reserve has not "Crypto curve plenary as such", although he claims that the Fed still has "significant input into the payment system."

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