The Facebook Libra team has had a lot on their plate in the last few months as they have been dealing with the regulatory challenges around the world, meeting with lawmakers in order to convince them of the value of the upcoming token and have also seen seven of the original founding members of the Libra Association depart. Despite all this, the team seems to be pushing ahead as they have held their inaugural meeting and have also set up their board with the remaining 21 members of the Libra Association and it seems Libra is here to stay.
Despite all the criticism, they do seem to have at least one powerful person in their corner as it was reported on October 15, 2019 that the bank with England governor of Mark Carney stated that he is in support of Libra being developed and also highlights some of the shortcomings of the current financial system which he believes justifies projects such as Libra.
Show of Support
One of his criticisms of the current financial system is the high cost of sending money from one place to another and he stated that this system penalizes the small businesses and cost them up to 200 basis points per transaction and that this necessitated the need for tokens like Libra.
“That’s not good enough in this day and age. Those payments should be instantaneous, it should be the same as us exchanging a banknote online. It should be virtually costless and it should be 100 per cent resilient,” he said.
Admittedly, one of the benefits of cryptocurrency is that it can be sent almost instantaneously and compared to fiat currency, costs much less in fees to the point that millions of dollars worth of certain tokens have been moved for transaction fees that were less than a single dollar and this, obviously, will be a selling point to everyday people and businesses alike.
Carney did admit that companies wishing to take on this problem should be prepared for regulators pushback and scrutiny.
“In terms of how this will proceed or not going forward, this will not be like social media. This will not be a case where something gets up and starts running and the system tries to work out after the fact how it’s regulated. It’s either going to be regulated properly, overseen properly, or it’s not going to happen,” he said.