Bank of England Governor Mark Carney, who is leaving office this week, has highlighted the potential risks tomonetary management in the event of the launch of the UK state cryptocurrency.
In the Preface to the Bank of England Working PaperMark Carney wrote: “Although government cryptocurrency provides a number of opportunities, it can pose significant challenges to maintaining monetary and financial stability.”
According to Reuters, Carney added that digitalThe pound should be “very carefully designed” if the central bank decides to issue it. Mark Carney will leave the post of Governor of the Central Bank on Friday and take office as the UK Special Representative for Combating Climate Change and Financing Climate Initiatives. He will be replaced by Andrew Bailey, current head of the Financial Supervision Authority (FCA), at the Bank of England.
Bank of England officials have spoken out more than oncethe topic of the cryptocurrency industry and stablecoins. Recently, the Deputy Governor for Financial Stability of the Bank of England warned that the development of the cryptocurrency economy could weaken and even eliminate the issuance of bank loans.
In addition, previously the chief cashier of the Bank of Englandsupported the idea of issuing a digital pound, and Carney stated that the US dollar, which is the global reserve currency, needs to be replaced with a digital currency similar to Libra.
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