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John Naronha

Will Bank of England's support to new payment systems boost demand for Facebook's Libra?

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In a major boost to Facebook’s payment system, the Bank of England Governor said that the central bank could allow new payment services such as the social media giant’s Libra cryptocurrency to hold overnight funds with them. According to the governor, extending access to new payment providers “can improve the transmission of monetary policy and increase competition.”

Currently, only commercial banks are allowed to hold overnight funds with the central bank. The primary reason of facilitating payments between banks and businesses and being a part of the financial system could significantly boost demand for Facebook’s cryptocurrency, which has already partnered with about two dozen businesses in a bid to raise capital to develop the currency.

Facebook’s new crypto is expected to hit the markets next year and could open the floodgates to a whole new world of online transactions, benefitting millions of individuals who do not have a bank account. However, for the coin to be accepted into the mainstream financial system, Facebook will have to comply with a host of regulations, including consumer protection, anti-money laundering, data protection, and operational resilience.

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That's at least questionable. Look, there are some reasons why Bank of England can think that it's not the best idea for the moment, and the main one is referred to the fact that this new payment system has some problems. From a rookie perspective, it seems like an ideal idea, but believe me, if you will analyze it deeper, or go consult a company like High-Risk Merchant Processing, there is a big probability that you will understand what I am talking about. Also, if you have any other questions or problems related to those finances, feel free to contact this company for a consultation!

Edited by Ella Tucker

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6 minutes ago, Ella Tucker said:

That's at least questionable. Look, there are some reasons why Bank of England can think that it's not the best idea for the moment, and the main one is referred to the fact that this new payment system has some problems. From a rookie perspective, it seems like an ideal idea, but believe me, if you will analyze it deeper, or go consult a company like High-Risk Merchant Processing, there is a big probability that you will understand what I am talking about. Also, if you have any other questions or problems related to those finances, feel free to contact this company for a consultation!

Hmm, it's very good to know. Thank you very much!

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