BoE’s Carney says Facebook Libra cryptocurrency to face ‘highest standard’ regulations

Libra

More concerns are pouring in less than 24 hours after Facebook Inc unveiled its Libra digital currency project.

The Bank of England’s governor, Mark Carney told Financial Times that he remains ‘open-minded’ to the project because ‘worldwide payments systems are largely unequal at the moment’.

He added that the UK will scrutinize Facebook’s Libra “very closely”. However, Facebook should be getting ready to spend more time with global authorities and financial regulators.

This is because of Carney’s plan to involve G7 countries, the Bank of International Settlements, International Monetary Fund as well as the Financial Stability Board to engagement with the social media giant on the project.

Facebook announced yesterday its much-awaited whitepaper on its cryptocurrency, Libra. The project is being back by major tech giants and research bodies under the Libra Association to be based in Geneva Switzerland.

While the announcement of the project has gained many interests across the global financial services sector, it has also gained major knocks and concerns on data privacy and security because of the huge data in the custody of Facebook.

The long and short is that Facebook should not expect a smooth ride on its road to entering the global payments system with a cryptocurrency for that matter.