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Bank of England Governor suggests a Libra-like currency should become the world’s reserve currency

Steven Zheng

Mark Carney, the current governor of the Bank of England, has offered a proposal that would replace the U.S. dollar with a digital currency similar to Facebook's Libra, according to a report by Bloomberg.

Speaking at the U.S. Federal Reserve's annual meeting in Jackson Hole, Wyo., Carney said that "the combination of heightened economic policy uncertainty, outright protectionism, and concerns that further, negative shocks could not be adequately offset because of limited policy space is exacerbating the disinflationary bias in the global economy." Carney warned that while in the short-term central bankers have to deal with the situation, dramatic steps need to be taken. 

Specifically, Carney identified the dollar's status as the world's reserve as something that needs to be replaced by a form of digital currency similar to Facebook Libra, believing that would be a better option than letting another fiat currency like the renminbi replace the dollar.