The Bank of England Governor Mark Carney has floated the possibility of allowing fintechs to deposit overnight money at the central bank. In last night’s
bombshell speech at Mansion House in London, he explicitly mentioned
Facebook’s Libra project. At this stage, the Bank is only exploring the possibility. No decision has been made.
Until now, only commercial banks have had access to central bank money, and additionally, broker-dealers can also deposit overnight in England.
“To support private innovation and to empower competition, the Bank is levelling the playing field between old and new,” said Carney. “This means allowing competitors access to the same resources as incumbents while holding the same risks to the same standards.”
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