World needs to end its risky reliance on the U.S. dollar, says Bank of England Governor Mark Carney

Reuters reports that Bank of England's Governor Mark Carney targeted the U.S. dollar's "destabilizing" role in the world economy on Friday. Carney said central banks might need to join together to create their own replacement reserve currency. The status quo global dollar dominance increases the risks of a liquidity trap of ultra-low interest rates and weak growth, Carney told central bankers gathered in the U.S. at Jackson Hole. The best solution to dislodge U.S. currency would be a diversified multi-polar financial system, something that could be provided by technology, Carney said.

Retuers notes that Libra was the most high-profile proposed digital currency to date but it faced a host of fundamental issues that it had yet to address. Carney added:

"As a consequence, it is an open question whether such a new Synthetic Hegemonic Currency (SHC) would be best provided by the public sector, perhaps through a network of central bank digital currencies."