“Cryptocurrency like Libra should become the global reserve currency”

Bank of England chief Mark Carney said the US dollar, which is the global reserve currency, needs to be replaced with a digital currency similar to Libra.

According to Carney, trade wars are detrimental to growth and disrupt multilateral cooperation, while central banks live in a world with low interest rates as they struggle to recover from inflation.

“We see a combination of strong economic uncertainty, overt protectionism and fears that future negative shocks cannot be adequately compensated. All this further reduces inflation in the world. What are we to do? ”Said Carney at the annual meeting of the US Federal Reserve in Wyoming.

He stressed that in the near future, banks will have to cope with the situation “the old fashioned way.” However, according to Carney, the global reserve currency, which is the US dollar, needs to be replaced with some form of global digital currency such as Libra stablecoin. This will be better than changing the dollar to another fiat currency, such as the Chinese yuan.

“In the long run, we need to change the rules of the game. When everything changes, you should not change one overgrown currency to another, ”said Carney.

In July, the head of the Bank of England said that society needs to recognize the problems that Facebook is trying to solve using the Libra project. He stressed that slow and expensive payments within the country and between states “stifle” the economy.