Bank of England Governor Сalls for Digital Currency As Global Reserve

Bank of England Governor Mark CARNEY recommended that central banks replace the US dollar with a digital reserve currency like Libra. He stated this at the Fed’s annual Jackson Hole Symposium.

The financier called for a radical change in the global monetary policy, as a result of which central banks will be more interested in digital currencies. According to him, the proactive replacement of the dollar with digital currency is preferable than allowing another national currency to take its place — for example, the Chinese yuan. Carney pointed out that global economic uncertainty is partly due to the deterioration of US trade relations:

“When change comes, it shouldn’t be to swap one currency hegemon for another. Any unipolar system is unsuited to a multi-polar world. We would do well to think through every opportunity, including those presented by new technologies, to create a more balanced and effective system.”

Mark CARNEY also praised the technology for its effectiveness in payments and cross-border transactions. His proposal is one of the most radical in recent years, and it signals the global trend of central banks to use digital currencies as an alternative to their outdated fiat counterparts.

Image courtesy of Standard.co.uk