Home NEWS Bank of England finally admits Carney held talks with Zuckerberg as row rages over new currency

Bank of England finally admits Carney held talks with Zuckerberg as row rages over new currency

by admin2 admin2
6 views
Bank of England finally admits Carney held talks with Zuckerberg as row rages over new currency

Bank of England finally admits Governor Mark Carney held talks with Facebook’s Mark Zuckerberg as row rages over new currency

By Matt Oliver For The Daily Mail

Published: 16:53 EDT, 26 August 2019 | Updated: 03:21 EDT, 27 August 2019

Mark Carney flew to the US for a secret meeting at Facebook’s headquarters with founder Mark Zuckerberg, the Daily Mail can reveal.

The Bank of England Governor is thought to have discussed the social network’s controversial plans for a digital currency, which will let people send money to each other without a bank account.

Face-to-face: It is the first time the long-rumoured meeting between Carney (pictured right) and Zuckerberg (left) has been acknowledged

He went to Facebook’s plush new Silicon Valley campus, accompanied by Tom Mutton, the Bank’s director of financial technology, documents released under freedom of information laws show.

It is the first time the long-rumoured meeting between Carney and Zuckerberg has been acknowledged. The Bank refused to give details of what Carney, 54, and Zuckerberg, 35, discussed, and declined to reveal the cost of the trip, including how much was spent on flights and hotels.

Concerns about the currency, called Libra, have prompted MPs and experts to call on the Bank to give details of the pair’s discussion. Carney broke ranks with other central bankers to say he was keeping ‘an open mind’ about Facebook’s new currency Libra.

The European Union’s anti-trust regulators have since launched an investigation into Libra over concerns about anti-competitive behaviour.

The project has drawn fierce criticism from finance ministers of the G7 club of developed nations, who say Libra threatens global financial stability and may help criminals launder money.

They say the social network would have to be subject to the same strict regulations as banks. There is also unease about Facebook having access to data after a string of high-profile privacy scandals at the tech firm. Despite the heavy criticism, Facebook says it will test the currency in some countries this year.

Libra will allow users of the social network to pay for products without leaving its website or smartphone apps. With a customer base of 2 billion across Facebook, Instagram and Whatsapp, it could pose a formidable challenge to traditional banks.

WHAT’S IN STARS FOR LIBRA 

LIBRA is a digital currency that Facebook hopes to launch in 2020.

Customers will be able to use it to pay for goods or send money to friends instantly without using a bank.

They will be able to buy virtual coins on websites owned by Facebook, such as Instagram and Whatsapp, rival sites and even real-world grocery stores. 

There are concerns about banking regulations and the use of sensitive personal finance data.

Carney visited Facebook in California, on April 16, two months before Libra was unveiled. Emails show bank staff tweaked Carney’s schedule multiple times to fit the meeting with Zuckerberg in.

The revelations will spark anger from MPs on Parliament’s digital select committee, who have repeatedly asked Zuckerberg to appear before them but have been brushed off. Zuckerberg has been accused of dodging scrutiny as Facebook became mired in scandals around the world.

Carney’s term as Governor is due to end in January, with the Government expected to name a successor in the coming months.

A Bank spokesman said giving details of Carney’s conversations with Zuckerberg ‘would be likely to inhibit the free and frank exchange of views in the future’.

Facebook did not respond to requests for comment.

Advertisement

Read More

You may also like

Leave a Comment