Bank of England head: currency like Libra could put an end to dollar dominance

Bank of England Governor Mark Carney said it would be appropriate to create, by analogy with Libra, a digital means of payment that could replace the US dollar as a global reserve currency. It is reported by Bloomberg .

Addressing the Fed during a speech at the annual Jackson Hole Financial Leadership Symposium, Carney said:

“The combination of increased economic uncertainty, clear protectionism and fears that negative shocks in the future will not be adequately compensated due to restrictions on policy implementation exacerbates deflationary pressures on the global economy.”

The financier added that central banks need to take not only short-term measures to smooth out the negative consequences caused by global processes, but also think about much more drastic steps.

In particular, Carney emphasized that a dollar with reserve currency status should be replaced by a digital payment medium, created by analogy with Facebook’s Libra. According to the banker, this is much better than "letting another currency, such as the yuan, replace the American one."

Recall, due to pressure from the regulator, at least three members of the Libra Association are considering leaving Facebook from the project.

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