Libra has become a catalyst for the reform of the mothers? The central bank governor told the reality

The Governor of the Swedish Central Bank said that Facebook's proposed cryptocurrency Libra has become the driving force behind the reform of the global central bank, reflecting the digital age.


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“When the Libra suddenly appeared, it was a very important catalytic event, which forced us to seriously think about what we did,” said Swedish central bank governor Stefan Ingves at CNBC’s “Squawk Box”. Said in the Europe program.

Ingfs said:

“One of my jobs is to provide a goods/service called Swedish Krona that is easy for Swedish citizens to use. If I am technically good at this, then I have no problem.” “But if I am like As we started issuing 20 kilograms of copper coins in 1668, we will soon be unemployed."

With the sharp decline in cash use in Sweden, the Swedish central bank has been exploring the possibility of issuing digital currencies. Many stores in the country do not even accept physical banknotes and coins, and many retailers have slogans on them saying they do not allow customers to pay in cash.

The Swedish central bank is currently seeking to test the so-called “e-krona” currency this year, saying that if the bank is “willing to do so”, it can introduce it.

Since Facebook announced its Libra cryptocurrency program in June, other central banks have stepped up their efforts in the digital currency arena. For example, the Central Bank of China has indicated that it is about to launch its own digital currency, and the Swiss National Bank said last week that it is exploring the use of virtual currency in trading.

However, Ingfs does warn that Facebook will face challenges as digital currency projects evolve. Since the beginning of this month, the company has lost seven initial supporters, major payment providers MasterCard and Visa, and technology companies eBay and Booking Holdings have withdrawn from the non-profit alliance to oversee the program.

He says:

“In today’s era, we have to turn things around and do things based on the assumption that there is no paper, and then when we talk about money, everything is digitized in one form or another.”

“But old problems – private sector funding or public sector funding – are basically the same. If history can give us any guidance, then almost all private sector initiatives will collapse sooner or later.”

On Monday, the Libra Association agreed to a charter that clarified the way the organization governed and appointed a board of directors, including former PayPal executive David Marcus, who is responsible for Facebook's blockchain strategy. Currently, the association consists of only 21 founding companies, compared to only 28 initially. PayPal is the first company to withdraw.

The project is facing severe regulatory pressures, and both France and Germany are threatening to stop the project. Facebook CEO Mark Zuckerberg will appear on Capitol Hill next week to address US lawmakers’ doubts about Libra.