Talking at a BIS lecture today, Mark Carney, the former Governor of the Banks of England and Canada, gave his views on the future of money. He believes stablecoins should have access to a central bank’s balance sheet, provided they meet a number of requirements.
In the talk, Carney expressed a preference for central bank digital currencies (CBDC) over private stablecoins. He’s particularly concerned that while central banks consider and prepare for possible CBDCs, private stablecoins could become massive during the multi-year waiting period.
Without specifically mentioning Libra (now Diem), which Facebook founded, he outlined how combining the network effects of both a social network and a payment system could be self-reinforcing, and this ‘uberization’ of money could be hard to unwind.
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