BANK OF ENGLAND GOVERNOR CARNEY DEFENDS FACEBOOKS LIBRA STABLECOIN

Last updated: June 20, 2025, 00:02 | Written by: Linda Xie

The world of cryptocurrency and digital finance is constantly evolving, and one project that has consistently captured headlines is Facebook's Libra, later rebranded as Diem and ultimately abandoned. 마크 카니(Mark Carney) 영국 중앙은행 총재가 페이스북의 새로운 통화 발행을 옹호했다. 캐나다의 뉴스 매체인 더스타(TheStar)는 지난 10월 15일자 보도에서 마크 카니 총재가 현행 금융 시스템의 단점을 강조했다고 전했다.While facing significant global regulatory pushback, the initiative garnered a surprising, yet nuanced, defender: Mark Carney, the then-Governor of the Bank of England.Carney's stance wasn't a wholehearted endorsement, but rather a pragmatic acknowledgement of the existing shortcomings within the traditional financial system and the potential benefits a well-regulated stablecoin could offer. Mark Carney, der Gouverneur der englischen Zentralbank Bank of England, verteidigt die geplante Einf hrung der Facebook Kryptow hrung Libra. Wie das kanadische Nachrichtenportal TheStar am 15. Oktober berichtet, sieht Carney Unzul nglichkeiten im aktuellen Finanzsystem, weshalb er die Einf hrung einer solchen Kryptow hrung f r sinnvoll h lt.He recognized that while the Libra project presented significant risks, it also addressed real-world problems, particularly the inefficiencies and high costs associated with cross-border payments and financial inclusion for underserved populations. The Bank of England's governor explains how Facebook's digital currency could work.This article delves into Carney's defense of Libra, examining his rationale, the conditions he placed upon its potential launch, and the broader implications of his perspective on the future of digital currency and financial stability. Bank of England Governor Mark Carney has defended Facebook s choice to create a new currency. Canadian news outlet TheStar reported Carney s remarks on Oct. 15, noting that he highlighted theUnderstanding Carney's position provides valuable insight into the complex interplay between innovation, regulation, and the evolving role of central banks in the digital age. Facebook's proposed Libra digital coin must show it is rock solid before it can be allowed to launch, Bank of England Governor Mark Carney said on Thursday.This article explores the intricacies of his support and the potential future of stablecoins.

Understanding Carney's Rationale for Supporting Libra

Mark Carney's support for Facebook's Libra, while carefully qualified, stemmed from a recognition of several key issues within the traditional financial system.He acknowledged that the existing system suffers from inefficiencies, particularly in cross-border payments, which are often slow, expensive, and opaque. Facebook s proposed Libra digital coin must show it is rock solid before it can be allowed to launch, Bank of England Governor Mark Carney said. Close 30.9 C. Karachi. Monday, JHe believed that innovative solutions like Libra could potentially address these shortcomings, offering faster, cheaper, and more transparent transactions, especially for individuals and businesses operating internationally. The head of the United Kingdom s central bank has said Facebook s new libra cryptocurrency could have genuine use cases if it can conform to regulatoryHis comments recognized Facebook's role as an innovator, attempting to solve existing challenges in the financial sector.

Inefficiencies in Cross-Border Payments: Traditional systems rely on correspondent banking networks, which involve multiple intermediaries, leading to delays and high fees.
Financial Exclusion: A significant portion of the global population remains unbanked or underserved by traditional financial institutions, limiting their access to essential financial services.
Innovation in Payments: Carney recognized that technology companies like Facebook could potentially drive innovation in the payments space, leading to improved efficiency and accessibility.

Carney's remarks highlighted a belief that the private sector could play a role in improving the financial system, but emphasized that any such initiative would need to adhere to the highest regulatory standards to mitigate potential risks. The governor of the Bank of England is backing Facebook's new cryptocurrency, the Libra, saying it could unlock billions of dollars in new financing and spur development in Great Britain and beyond.He essentially challenged Facebook to create a system that was secure, robust, and compliant with existing regulations.

The Conditions for Libra's Approval: A ""Rock Solid"" Foundation

While acknowledging Libra's potential, Carney made it abundantly clear that the project would need to meet stringent regulatory requirements before being allowed to launch. Facebook's Libra cryptocurrency could be subject to the highest standards in global regulations, said Bank of England governor Mark Carney.He emphasized the need for Libra to be ""rock solid,"" indicating that it would need to demonstrate its resilience, security, and compliance with applicable laws and regulations.This meant addressing concerns related to:

Anti-Money Laundering (AML): Ensuring that Libra could not be used for illicit activities, such as money laundering and terrorist financing.
Data Privacy: Protecting users' personal data and complying with data privacy regulations like GDPR.
Cybersecurity: Implementing robust cybersecurity measures to prevent hacking and data breaches.
Financial Stability: Mitigating potential risks to financial stability, such as the potential for large-scale capital flight or disruption to the payments system.

Carney's conditions reflected the Bank of England's commitment to maintaining financial stability and protecting consumers. Bank of England Governor Mark Carney defends Facebook s Libra stablecoin firmly against Libra, the governor said Facebook is simply trying to address the shortcomings in the traditionalHe essentially set a high bar for Libra, signaling that it would be subject to rigorous scrutiny from regulators around the world.This included compliance with existing standards and the development of new regulatory frameworks to address the unique challenges posed by stablecoins.

Meeting Regulatory Demands

Libra's success hinged on its ability to navigate the complex regulatory landscape and address the concerns raised by central banks and financial regulators. On the other hand, Bank of England governor Mark Carney said yesterday that people need to acknowledge the issues Facebook is attempting to solve with Libra, regardless of the project sThis involved demonstrating a commitment to transparency, accountability, and compliance with applicable laws and regulations.The challenges faced by Libra in meeting these demands ultimately contributed to its demise.

Libra's Potential to Unlock New Financing and Spur Development

Carney also pointed to the potential of Libra to unlock new financing opportunities and spur economic development.He suggested that a well-regulated stablecoin could facilitate cross-border payments, reduce transaction costs, and promote financial inclusion, particularly in developing countries.This could lead to increased trade, investment, and economic growth.

He envisioned a scenario where Libra could provide access to financial services for individuals and businesses that are currently excluded from the traditional banking system.This could empower individuals to participate more fully in the economy and create new opportunities for entrepreneurship and innovation.

Examples of Potential Benefits

Reduced Remittance Costs: Lowering the cost of sending money home for migrant workers, allowing them to send more money to their families.
Increased Access to Credit: Providing access to credit for small businesses and entrepreneurs in developing countries.
Facilitating Cross-Border Trade: Simplifying and streamlining international trade transactions, reducing costs and delays.

The Shortcomings of the Traditional Financial System

A key aspect of Carney's defense of Libra was his recognition of the shortcomings of the current traditional financial system. Facebook s proposed Libra digital coin must show it is rock solid before it can be allowed to launch, Bank of England Governor Mark Carney saidHe highlighted the inefficiencies, high costs, and limited accessibility of traditional financial services, particularly for cross-border payments and underserved populations.He argued that these shortcomings create opportunities for innovative solutions like Libra to emerge and potentially disrupt the status quo.

He pointed to the fact that a significant portion of the global population remains unbanked or underbanked, lacking access to basic financial services. In a speech in the City s Mansion House tonight, the Bank s governor Mark Carney will praise Libra s potential to substantially improve financial inclusion and dramatically lower theThis limits their ability to participate in the economy and improve their living standards. Bank of England's Governor Marc Carney is expected to say Thursday that Facebook's Libra project needs careful scrutiny by regulators. According to the text of remarks by Mr. Carney, published inHe suggested that Libra could potentially address this issue by providing a more accessible and affordable alternative to traditional banking services.

Specific Weaknesses Identified

High Transaction Fees: Traditional payment systems often charge high fees for cross-border transactions, particularly for small amounts.
Slow Processing Times: Cross-border payments can take several days to process, causing delays and inefficiencies.
Limited Accessibility: Many individuals and businesses lack access to traditional banking services, particularly in developing countries.
Lack of Transparency: Traditional payment systems can be opaque, making it difficult to track transactions and understand the associated fees.

The Bank of England's Role in Regulating Digital Currencies

Carney emphasized the Bank of England's commitment to playing a proactive role in regulating digital currencies. Bank of England Governor Mark Carney has defended Facebook s choice to create a new currency. The following is the report by the Cointelegraph about Facebook s Libra. Canadian news outlet TheStar reported Carney s remarks on Oct. 15, noting that he highlighted the shortcomings of the current traditional financial system. Because of theHe made it clear that the Bank would not simply stand by and allow unregulated digital currencies to proliferate, but would actively engage in developing appropriate regulatory frameworks to mitigate potential risks and ensure financial stability.

He recognized that digital currencies pose unique challenges for regulators, requiring a collaborative approach involving central banks, financial regulators, and international organizations.He stressed the need for global cooperation to develop consistent regulatory standards and prevent regulatory arbitrage.

Key Regulatory Considerations

Financial Stability: Ensuring that digital currencies do not pose a threat to financial stability.
Consumer Protection: Protecting consumers from fraud, scams, and other risks associated with digital currencies.
Anti-Money Laundering: Preventing digital currencies from being used for money laundering and terrorist financing.
Data Privacy: Protecting users' personal data and complying with data privacy regulations.

Mixed Reviews of Libra: A Balancing Act

Carney's views on Libra were nuanced and reflected a careful balancing act between recognizing its potential benefits and acknowledging its potential risks.He delivered mixed reviews, praising its potential to improve financial inclusion and reduce transaction costs while also cautioning against its potential to destabilize the financial system and facilitate illicit activities.

He emphasized the need for regulators to carefully scrutinize Libra and ensure that it meets the highest regulatory standards before being allowed to launch. Facebook s Libra project has encountered significant pushback from regulators around the world. Mark Carney, Governor of the Bank of England, has been one of the more supportive figures. Yesterday, in a speech about the Financial Stability Report, he was asked about Libra. In his response, the challenges that Libra faces became clear.He also stressed the importance of international cooperation to develop consistent regulatory frameworks and prevent regulatory arbitrage.

Key Takeaways from Carney's Reviews

Potential Benefits: Improved financial inclusion, reduced transaction costs, increased access to credit, and facilitated cross-border trade.
Potential Risks: Financial instability, money laundering, data privacy breaches, and consumer protection issues.
Regulatory Scrutiny: The need for careful scrutiny and compliance with the highest regulatory standards.
International Cooperation: The importance of global cooperation to develop consistent regulatory frameworks.

Addressing Facebook's Attempt to Solve Problems with Libra

Carney acknowledged that Facebook's Libra project was, at its core, an attempt to address real-world problems within the existing financial system.He recognized that Facebook was trying to create a more efficient, accessible, and affordable payment system, particularly for cross-border transactions and underserved populations.

He argued that while the project had potential downsides, it was important to acknowledge the issues that Facebook was attempting to solve. Earlier in July, Bank of England governor Mark Carney said that people need to acknowledge the issues Facebook is attempting to solve with Libra, regardless of the project s potential downsides.He believed that the discussion surrounding Libra had helped to highlight the shortcomings of the traditional financial system and spurred innovation in the payments space. librabank.ro - - Carney, guvernatorul Bancii Angliei, a luat apararea alegerii Facebook de a crea o noua moneda.However, he maintained that solving these problems could not come at the expense of financial stability or consumer protection.

The Broader Impact of Libra

Even though the original Libra project (later Diem) was ultimately abandoned, its impact on the financial industry and regulatory landscape is undeniable. Speaking at a conference of central bankers in Portugal, Mark Carney, governor of the Bank of England (BoE), delivered mixed reviews of libra. The head of the United Kingdom s central bank has said Facebook s new libra cryptocurrency could have genuine use cases if it can conform to regulatory demands, the Financial Times (FT) reported on June 18.It forced central banks and financial regulators to confront the challenges and opportunities posed by digital currencies and stablecoins. Mark Carney thinks that while regulators will have to be satisfied, Facebook users will want a cheaper way of moving money. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.It also spurred innovation in the payments space, leading to the development of new technologies and business models.It also highlighted the potential power of Big Tech companies in the financial sector, causing regulators to consider the implications of a tech company controlling payment systems.

Why Libra Ultimately Failed

Despite Carney's measured support and the potential benefits it aimed to offer, Libra (Diem) ultimately failed to launch.Several factors contributed to its demise:

Regulatory Resistance: Intense scrutiny and resistance from regulators worldwide created a challenging environment for the project.Concerns over financial stability, money laundering, and data privacy proved difficult to overcome.
Partnership Exodus: Several key partners, including Visa, Mastercard, and PayPal, withdrew from the project amid regulatory pressure and reputational concerns.
Reputational Issues: Facebook's existing reputation regarding data privacy and its overall trustworthiness further complicated Libra's acceptance among the public and regulators.
Shift in Strategy: The Libra Association made several attempts to pivot its strategy and address regulatory concerns, but ultimately failed to gain sufficient support.

The Legacy of Libra and the Future of Stablecoins

While Libra itself may be defunct, its legacy continues to shape the conversation around digital currencies and stablecoins.It served as a catalyst for increased regulatory focus on the space and highlighted the importance of collaboration between policymakers, central banks, and the private sector.The development of Central Bank Digital Currencies (CBDCs) is often cited as a direct consequence of the challenges posed by Libra.It’s hard to deny that Libra and the regulatory responses to it paved the way for the current climate of digital currency and the future of finance.

The stablecoin market continues to evolve, with various projects exploring different approaches to achieving stability and compliance.As regulatory frameworks mature, the potential for stablecoins to improve financial inclusion, streamline payments, and foster innovation remains significant.

Conclusion: Carney's Pragmatic Approach to Innovation

Mark Carney's defense of Facebook's Libra stablecoin was not a blind endorsement but a pragmatic assessment of the existing financial system's shortcomings and the potential for innovation to address them.He emphasized the need for stringent regulatory oversight and a ""rock solid"" foundation before allowing Libra to launch, highlighting the importance of financial stability, consumer protection, and compliance with applicable laws and regulations. O jornal canadense TheStar relatou os coment rios de Carney em 15 de outubro, observando que ele destacou as defici ncias do atual sistema financeiro tradicional. Devido inefici ncia dos pagamentos, Carey acha que empresas como o Facebook devem se envolver em projetos como o Libra. O setor de pagamentos atual est deficienteWhile Libra ultimately failed to materialize, Carney's perspective provides valuable insights into the evolving landscape of digital currency and the role of central banks in navigating the challenges and opportunities of the digital age.The central message is that responsible innovation requires careful consideration of both its potential benefits and risks, as well as a commitment to robust regulatory frameworks.Carney's approach encourages us to consider how technology can solve existing problems while safeguarding the integrity of the financial system.

Key Takeaways:

Carney acknowledged the shortcomings of the traditional financial system, particularly in cross-border payments.
He emphasized the need for Libra to meet stringent regulatory requirements before being allowed to launch.
He recognized the potential of Libra to unlock new financing opportunities and spur development.
His views reflected a careful balancing act between recognizing potential benefits and acknowledging potential risks.
Libra's legacy continues to shape the conversation around digital currencies and stablecoins.