Bank of England head: currency like Libra could end dollar dominance

Bank of England Governor Mark Carney said it would be appropriate to create, by analogy with Libra, a digital means of payment that could replace the US dollar as a global reserve currency. It is reported by Bloomberg.

Addressing the Fed during a speech at the annual Jackson Hole Financial Leadership Symposium, Carney said:

“The combination of increased economic uncertainty, clear protectionism and fears that negative shocks in the future will not be adequately compensated due to restrictions on policy implementation exacerbates deflationary pressures on the global economy.”

The financier added that central banks need to take not only short-term measures to smooth out the negative consequences caused by global processes, but also think about much more drastic steps.

In particular, Carney emphasized that a dollar with reserve currency status should be replaced by a digital payment medium, created by analogy with Facebook’s Libra. According to the banker, this is much better than “letting another currency, such as the yuan, replace the American one.”

Recall, due to pressure from the regulator, at least three members of the Libra Association are considering leaving Facebook from the project.

At least three Libra members are considering leaving the project from the largest social network Facebook, according to the Financial Times.

According to the publication, two members of the Libra Association are discussing what should be the “next right steps.” A third unnamed member of the association is seriously concerned about possible problems and excessive oversight by regulators.

In a conversation with the Financial Times, one of the partners said that it would be difficult for members of the association to comply with all the requirements set by regulators. Another criticized Facebook for its ill-conceived strategy, saying the following:

“Some of this regulatory talk should have taken place before launch. This would make it possible to understand how regulators would react to the project. ”

Also, one of the participants suggested that Facebook was probably “tired of having to pout yourself for everyone.”

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