Bank of England Governor Mark Carney said citizens need to recognize the problems Facebook is trying to solve with Libra, no matter how bad the project is. Carney delivered her speech at the Financial Stability Report press conference on July 11 on the Bank of England YouTube channel.
"It's way too expensive to make domestic payments. It's way too slow and it hurts consumers and businesses. It stifles innovation and it's far too expensive to send money across borders, which poses enormous financial inclusion and cost issues. So while we are trying to solve all these problems, we must absolutely recognize the problem they are trying to solve. And if that's not it, we'd better have answers to bring.
However, Carney also believes that Libra, because of the scale of the project, must be almost perfect at the outset – at least from a financial security point of view – to be released.
"It's either successful or not. If it succeeds, it becomes systemic because it would involve a very large number of users. And if you're a systemic payment system, it's a 5-sigma. You must be on all the time. You can not have any startup problems. You can not let people lose money in their portfolios … The standards are in a different postal code – to use the American term. "
Carney then listed a number of other issues that Libra must solve. In his opinion, basic risk, the risk of rebalancing, the management of underlying assets, the fight against money laundering and counterterrorism must be adequately addressed before they are launched.
As previously reported by Cointelegraph, US Federal Reserve Chairman Jerome Powell recently made similar remarks about Libra, saying it was necessary to reach the high bar before the cryptocurrency project could begin. However, in a previous statement, Powell noted that the Federal Reserve does not have "complete authority over crypto-currencies as such," though it says the Fed has always "a significant contribution in the payment system".