Bank of England Governor Mark Carney has reportedly backed Facebook’s decision to introduce a new digital coin.
Reported by TheStar on October 15, Carney claimed that he has foreseen the downfall of the existing traditional financial system. Due to the current inefficient nature of the payments, Carey supposed that major companies, nominally Facebook, should explore other approaches with projects like Libra.
More specifically, he reportedly criticized the high amount of process fee required for transferring funds, deeming it a penalty for small-scale firms and can 200 basis points more costly for every transaction, accompanied by the low process speed.
“That’s not good enough in this day and age. Those payments should be instantaneous, it should be the same as us exchanging a banknote online. It should be virtually costless and it should be 100 per cent resilient.”Carney added.
Carney admits that there are several measures that can properly address the matter, and emphasize that the challenge “is to bring online payments and other payments up to the standard that is found in a number of major emerging economies and a few advanced economies.”
Nonetheless, he still sends his wish to the firms putting resources in coming up with a solution for this problem, as any advances in the space will come with heavy scrutiny from the governments.
“In terms of how this will proceed or not going forward, this will not be like social media. This will not be a case where something gets up and starts running and the system tries to work out after the fact how it’s regulated. It’s either going to be regulated properly, overseen properly, or it’s not going to happen.”