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An unruly social media channels is a model for Facebook’s Scale is money: BoE’s Carney

LONDON (Reuters) – Facebook can’t be expected that the Scale of currency in order to take advantage of the same unregulated free-for-all, which has helped the company to a dominant position in the social media, the Bank of England Governor Mark Carney said on Thursday.

Display a binary code-to-show and 3-D-printed with Facebook logo in this illustration photo June 18, 2019. REUTERS/dado Ruvic/Illustration

The US social media company has attracted worldwide interest in in the earlier this week announced plans to set up its own payment system, backed by a currency it calls the monitor.

“The Bank of England, and of the approaches Scales to keep an open mind, but don’t open the door,” said Carney, in a speech he will give at the very heart of London’s financial district. “In contrast to social media, the terms of the engagement with innovations, such as the monitor, it must be assumed in advance of a launch.”

Carney, who steps down in January, will make his speech, in addition to the finance secretary, Philip Hammond, is expected to warn of the risk of a non-deal that Brexit would lead to enhanced simplicity, and it’s a Scottish vote for independence.

Hammond will also be the “vision” for Britain’s financial services, at a time when the government and the BoE would like to make sure London retains its position as the world’s biggest financial center, even after the Uk leaves the EU.

Carney’s comments were part of a larger speech given at the unveiling of a major review into the future of Britain’s financial system, the cost to the consumer, making it easier for small businesses to get funding and reduce banks’ compliance costs.

Cash use is down in Britain for the benefit of the credit and debit cards, though some of the older British people and businesses in rural communities with poor internet still prefer to have the cash.

If the Scale is in the vicinity of the meeting in Facebook’s ambitions, as it would in a systemically important payment system, the BoE and financial supervisory authorities around the world are interested in it, Carney said.

The company will have to comply with severe standards concerning the protection of the consumer, and the fight against money laundering, as well as ensuring the platform is enhanced and the competition was really open, so that the new users will be able to participate on a level playing field”.

The BoE, which has already been able to to some of non-banks to use the payment services, said that it would be consulted on in the world, will be the first major jurisdiction to allow non-banks to deposit money with it overnight, and it might even borrow the Books and other funds.

“The expansion of access, improving the transmission of monetary policy, and increasing the level of competition,” Carney said.

These changes would also reduce the economic dependence on Britain’s biggest banks still dominate the consumer and small-business financial-service, but it came close to collapse during the financial crisis of 2008, it cost the tax payer billions.

Carney also gave a date of 2021 if the Uk’s financial institutions to take into account the risks of climate change as a ‘stress test’ of their finances.

Climate change is a major preoccupation of the Carney. In the uk, the government recently announced the intention of the country to be carbon-neutral in 2050 it will be the first G7 country to do so.

FILE PHOTO: Governor of The Bank of England, Mark Carney, speaking at an FT event in London, england, February 12, 2019 at the latest. (REUTERS photo/Hannah McKay/File Photo

The central bank governor did not address the direct challenge to Britain’s exit from the European Union, and on Oct. 31, or the outlook for interest rates and the broader economy.

Earlier on Thursday, the BoE kept interest rates on hold at 0.75%, but a reduction in the growth rate for the second quarter of the year is zero attention paid to the risks associated with the global trade tensions and growing fears of a no-deal for Brexit.

Carney will be out by the finance secretary, Philip Hammond, who has been set up to alert you that it’s a no-deal for Brexit that would prolong austerity, and the threat of a referendum, which resulted in Scottish independence.

Reporting by David Milliken and Huw Jones; uk.online@reuters.com; +44 20 7542 5109

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