LONDON – Bank of England Governor Mark Carney issued a strong warning to Facebook over its forthcoming cryptocurrency. “This is not learning on the job stuff,” he told the social media giant (via Yahoo Finance News).
Bank of England Keeping an Eye on Libra
Speaking Thursday, Mr. Carney warned, “it’s got to be rock solid from the start or it’s not going to start.” The Governor of the Bank of England explained:
There are a very broad range of issues. It’s either successful or it isn’t. If it successful, it becomes systemic because there are a large number of users. If it’s a systemic payment system … You have to be on all the time. You can’t have teething issues. You can’t have people losing money out of their wallets. The standards are in a different zip code than the standards often in other forms of technology.
The Bank of England released a report in which it would “asses risks to the UK financial system associated with the use of tokens and other assets.” Mr. Carney’s comments came shortly after Federal Reserve Chairman Jerome Powell warned that Libra “cannot go forward” until key concerns are addressed.