Mark Carney thinks that Libra-like currency can replace USD

by in Cryptocurrency News

Mark Carney thinks that Libra-like currency can replace USD

Governor of the Bank of England Mark Carney proposed a modification of the global economic system. He suggested replacing USD with a Libra-like digital currency.

Related: Facebook presents a new payment system on its social media

During his speech at the Federal Reserve’s yearly symposium, the governor announced that a currency like Facebook’s Libra may replace the US dollar and become the world’s reserve currency.

Carney added that replacing USD with a cryptocurrency is a more desirable choice than permitting its reserve status to be replaced by another national currency, e.g. China’s renminbi. He also mentioned that an innovative “Synthetic Hegemonic Currency” could be properly implemented by the public sector:

“The compound of strengthened economic policy dilemma, obvious protectionism and concerns that extra, negative collapses couldn't be appropriately compensated because of insufficient policy space is increasing the disinflationary bias in the worldwide economy industry”.

In July 2019, Carney argued that Libra, due to the massive scale of the project, has to be virtually perfect at the outset for it to be released at all, saying:

“It’s either successful or it isn’t. If it’s successful, it becomes systemic, because it would involve a very large number of users. And if you’re a systemic payment system, it’s 5-sigma. 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”.

Still, in 2018, Carney claimed that BTC cannot be considered a legitimate currency by traditional definitions - neither a means of exchange nor a store of value.