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    Home»Noticias»Head of the Central Bank of Sweden: Libra forced central banks to reconsider their activities

    Head of the Central Bank of Sweden: Libra forced central banks to reconsider their activities

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    By BlockchainJournal on octubre 15, 2019 Noticias
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    Facebook's digital currency Libra has pushed central banks to reform their work. This was stated by the head of the Bank of Sweden Stefan Ingves, noting that the regulator is exploring the possibility of issuing its own digital currency.

    In a conversation with CNBC, he called Libra “an incredibly important catalyst event,” which made central banks think about their activities.

    “Part of my job is to produce a product / service called the Swedish krona, which is convenient for Swedish citizens to use. If I do my job well technically, I have no problem. But if I started to produce 20-kilogram copper coins, as they did in 1668, then we would soon cease our activities , ”said Ingves.

    At the same time, the head of the Central Bank of Sweden is confident that Libra has yet to face a number of difficulties.

    “If we talk about money, then everything will become digital in one way or another. But there is an old problem – private sector money or state money. In fact, they are identical, but if history teaches us something, all such initiatives from the private sector would sooner or later fail, ”said Ingves.

    He also said that the Bank of Sweden is already studying the possibility of issuing digital currency of the central bank due to a sharp reduction in the use of cash. The regulator can launch a pilot project of e-crown this year.

    Recall that the Swedish regulator is not the first central bank to talk about developing its own digital currency amid the launch of Libra.

    So, in July, the former head of the People’s Bank of China Zhou Xiaochuan called Libra a threat and called for accelerating the development of the digital renminbi. In August, representatives of the Chinese central bank announced that the regulator’s own digital currency was ready after five years of development.

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