Mark Carney, Governor of the Bank of England, has cautiously given Libra, the digital currency proposed by Facebook, a welcome as the bank contemplates the future of money and transaction.
Carney alluded to the fact that its implementation can yield benefits such as lowered costs and wider financial inclusion, however, he also stated that regulation is needed for it to work efficiently.
All this came in a major speech Carney made last Thursday during which he also made the announcement of the intention to allow non-banks to have the ability to have Bank of England Accounts. This allows these entities to have a place to secure their reserves. These entities such as Worldpay, can also benefit from speedy, reliable, and more cost-effective transactions.
Facebook revealed their plan just last week and Carney seems to be having a positive reaction to it. It is important to note, however, that Carney has said that his open mind where this is concerned does not mean that he is given an open invitation.
Citing social media as an example, Carney indicated that he does not want a similar regulation debacle where policies are playing catch up well after billions of people enrolled.
The idea behind Libra is a virtual currency that allows transfer using social media. Its value is based on real life currencies instead of crypto currencies.
The Libra Association has stated that it intends to promote a secure network that makes use of anti-fraud.
Climate change is one of the key focal points of the governor as he is intent on mitigating future risk posed by events such as flooding, crop failure, or droughts. The Bank of England needs to ascertain if financial firms can survive such a crisis.
Note the Mark Carney has held his post for almost a decade and now has a little over six months left in it.