Bank of England Governor Mark Carney has defended Facebook’s choice to create a new currency. Canadian news outlet TheStar reported Carney’s remarks on Oct. 15, noting that he highlighted the shortcomings of the current traditional financial system. Because of the inefficiency of the payments, Carey thinks that firms such as Facebook should be involved in projects like Libra. The current payments industry is lacking More precisely, he reportedly criticized the high costs of moving money, saying that they penalize small businesses and can cost firms as much as 200 basis points per transaction, besides being processed too slowly. According to …
Yves Mersch, European Central Bank’s key legal official, said that Facebook’s Libra stablecoin is “beguiling but treacherous” during a speech at the ECB’s legal conference in Frankfurt on Monday. Bloomberg reported on Mersch’s remarks in an article published on Sept. 2. Per the report, he said that private currencies have little or no prospect of establishing themselves as viable alternatives to centrally-issued legal tenders. Mersch: Only central banks can be trusted He believes that only independent central banks can grant sufficient institutional banking to make a currency reliable and win public trust. He further noted: “I sincerely hope that the …
Nobel prize-winning economist, Joseph Eugene Stiglitz, claims that “every currency is based on trust, but only a fool would trust Facebook’s Libra” in an article published on July 2. Stiglitz also notes that “in just a few short years, Facebook has earned a level of distrust that took the banking sector much longer to achieve.” He appears to fear that Facebook’s cryptocurrency could be hospitable to a shadow economy: “The last thing we need is a new vehicle for nurturing illicit activities and laundering the proceeds, which another cryptocurrency will almost certainly turn out to be.” Still, the economist also …
Banks may be bound to stop working with social media giant Facebook if the firm launches its Libra stablecoin, according to ING CEO Ralph Hamers. Bank can choose to “not accept the client” Financial news outlet Financial Times reported on Hamers’ remarks on Oct. 22. Per the report, he explained that institutions like ING have to guard the financial system to prevent criminal activity. Because of this, concerns over Libra’s potential for illegal use may result in a response from the banks: “We can take measures and exit the client, or not accept the client, so those are discussions you …
Blockchain Capital partner Spencer Bogart claimed that the crypto endeavors of social media giant Facebook could result in the cryptocurrency user base doubling or tripling. Bogart made his remarks during an interview with Bloomberg published on May 8. In the interview, Bogart confirmed that he thinks Facebook Coin — whether it will be a stablecoin or a different kind of crypto asset — will act as a stepping stone, introducing the masses to the idea of cryptocurrencies. He explained that once people own Facebook Coin: “It’s like being on the internet; so people can spin out and they can start …