Carney Says Facebook Token to Face Highest Regulatory Standards
Facebook Inc.’s planned new cryptocurrency will face strict regulation and scrutiny at the level of the Group of Seven.
(Bloomberg) -- Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.
Facebook Inc.’s planned new cryptocurrency will face strict regulation and scrutiny at the level of the Group of Seven, according to Bank of England Governor Mark Carney.
The digital currency known as Libra is part of a “revolution in global payments,” and central banks need to be aware of new developments to ensure they are able to maintain monetary and financial stability, Carney told an audience in Sintra, Portugal. That includes looking at their operational resilience, including anti-money laundering, counter-terrorist financing and data-privacy protections.
“Anything that works in this world will become instantly systemic and will have to be subject to the highest standards of regulation,” Carney said. “We will look at it very closely and in a coordinated fashion at the level of the G-7, the BIS, the FSB and the IMF. So open mind, but not open door.”
To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net
To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, David Goodman, Jana Randow
©2019 Bloomberg L.P.