June 24, 2019, | AtoZ Markets - In his recent interview, Mark Carney, the Governor of the Bank of England expressed his“open mind” on the potential utility of the Facebook Libra coin, alluding that England examines Facebook crypto. The Governor noted, however, the new Facebook product could face strict regulation.
England is willing to remain open to Facebook Coin
Despite the common positivity toward the new Facebook project, the United Kingdom sustains its strict position toward crypto adoption. As the Bank of England representatives outlined, although they are willing to consider Libra coin advantages, the social network shouldn’t see this as an opportunity to simply do whatever it wants.
As the Governor of the Bank of England outlined, “anything that works in this world will become instantly systemic and will have to be subject to the highest standards of regulation.”
Thus, the Central bank could instill strict regulation toward cryptocurrencies. While England examines Facebook crypto, the country officials admit that for crypto regulation to be successful, the effort must become global.
England examines Facebook crypto while staying behind the Swedish cash-less society
Facebook Libra has been garnering mixed reactions from critics and traditional monetary establishments since the Facebook coin whitepaper release on June 18, 2019. On July 16, the US Senate will hear the testimony on Facebook's Libra coin which launch is scheduled to 2020.
The British and rest of the EU regulators believe that financial policies must be put in place in case of the crypto expansion and do their job accordingly.
Recently, Francois Villeroy de Galhau, the Governor of Bank of France, announced that France plans to form a G7 crypto task force to examine regulatory issues related to cryptos.
Mark Carney, in his turn, explained that the local banks fail to compete technologically with other institutions in neighboring regions.
As an example, the Governor of the Bank of England mentioned Sweden. The Swedes are known for not to carry cash in their pockets, and this is publicly known of them to a limited extent.
At a recent summit, Mark Carney commented:
“The U.K. is still a long way behind countries such as Sweden, where users can make direct, free and real-time bank-to-bank payments in-store and online with a text or a scan of a QR code.”
He noted, however, that Libra, if it achieves its ambitions, would be systemically important.
Notable, the recently submitted reports show that in-store cash transactions in the UK have decreased rapidly, while online digital payments are more popular than ever.
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