London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Bank of England Governor Mark Carney says central banks won't be left behind by fintech

Bank of England Governor Mark Carney says central banks won't be left behind by fintech

Carney says the financial system is the most heavily regulated part of the economy and central banks must use its role to act as a guardian to risk.
As big tech firms muscle into the financial world, the governor of the Bank of England says he sees little risk that central banks will be left behind by new technology.

While admitting that central banks would not be “at the cutting edge of innovation,” Carney argued that institutions such as the Federal Reserve and BOE would be needed at the heart of efforts to ensure stability.

“That’s not hubris. The fact is that the financial system .... is the most heavily regulated part of the economy. That’s for a reason, there are lots of ways it can go wrong,” Carney said.

The central banker cited the example of the “huge advances” of financial technology (fintech) in China which has helped to create “one of the larger shadow banking bubbles in the world today.”

“Quite often a good idea leads to other issues which is why central banks and regulators have to be on top of them. And its why we have to look at them as a whole,” said Carney.

The U.K. central bank chief was speaking on an IMF panel moderated by CNBC’s Elizabeth Schulze in Washington on Wednesday.

Carney said one main role of central banks in the development of fintech would be to remove impediments to different parties, ensuring a “level playing field” so good ideas aren’t excluded.

Carney has appeared more open to Facebook’s libra cryptocurrency than other officials. He said on Tuesday that the digital token could help offer an alternative U.K.’s payments system, which he described as “slow and expensive.” As far back as June, Carney had said he was keeping an “open mind but not an open door” on libra.

The central banker has also proposed a virtual currency alternative to the dollar as the world’s reserve currency. Carney argued such a digital currency “could dampen the domineering influence of the U.S. dollar on global trade.”

Facebook’s plan is to create a cryptocurrency underpinned by a basket of global currencies. But central banks have been quick to ramp up their efforts in the digital asset space since Facebook announced libra back in June. The People’s Bank of China for instance has been racing to release a digital currency tied to the yuan, while the Swiss National Bank is exploring the use of digital currencies in trading.

The head of Sweden’s Riksbank on Tuesday told CNBC that libra has been an “incredibly important catalytic event,” incentivizing central banks to reform in order to reflect the digital age. The bank is looking to pilot a digital version of the Swedish krona this year.

Global monetary policymakers have also been wary of Facebook’s proposed libra currency. member Benoit Coeure last month warned the bar for approval when it comes to so-called stablecoins like libra “will be high,” while Chairman Jerome Powell raised “serious concerns” with the token and said the U.S. central bank has set up a working group to investigate it.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×