Bank of England allows Facebook to bank at Threadneedle Street

  • 22 June 2019, Saturday, 11:30

Before Facebook launched its Libra project, several rumors predicting the social media giant’s move were doing the rounds. At that time, Caitlin Long, Co-founder of the Wyoming Blockchain Coalition, had laid out six predictions. Long has got one right.

Long had predicted that Facebook might get special deals from governments and according to the Financial Times, UK’s Central Bank would for the first time, allow tech companies to bank at Threadneedle Street and offer payment systems. This service was previously open only to commercial banks.

Long in her tweet said,

“TOLD YOU FACEBOOK WOULD GET A SPECIAL DEAL from govts. Very interesting development prob also benefits other #crypto start-ups. But they’re all pocketing the interest income—the corporate welfare for banks will now go to tech cos too ????”

When it came to Facebook’s Libra, Bank of England’s Governor, Mark Carey, stuck to his “open mind, but no open door” approach. However, the funds underpinning Facebook’s crypto would be offered an interest-bearing account, which would also relieve it of banking charges and other risks faced by commercial banking partners, reported the publication.

Carey said,

“Unlike social media, for which standards and regulations are being debated well after it has been adopted by billion of users, the terms of engagement for innovations such as Libra must be adopted in advance of any launch.”

He also noted that Libra could be systematically important and will be regulated accordingly.

At press time, Bitcoin was valued at $10,928 with a market cap of $194.24 billion. The 24-hour trading volume of the coin was reported to be $25.61 billion, as it spiked by 11.59% over the day. Bitcoin noted a growth of 25.85% over the past week and continued to reign by 0.83% within the hour.