A few days ago, it was reported that Facebook is working on its own cryptocurrency project, and the US Senate Banking is clearly concerned about this as Facebook has a history of dealing with individuals’ financial information.
Hence, an open letter was sent by the banking committee to the Mark Zuckerberg (Founder and CEO of Facebook) on 9th May. Requesting Mark to share details about its cryptocurrency project particularly consumer privacy.
The letter addresses the fact that last year, Facebook asked US banks to share financial detail about the consumer. Moreover, privacy experts have raised a concern about Facebook’s extensive data collection and whether the data collected by Facebook is being used illegal or giving any unfair credit to Facebook under the Fair Credit Reporting Act.
The committee wants Marks to outline how his cryptocurrency project would work. And what plan Facebook has for financial regulation and how users will expect their information to be kept hidden in terms of consumer protection.
Broadly speaking, the committee wants to know which consumer financial information has been shared by the banks and how Facebook has used that information (including whether if they have sold or shared that info to third parties).
This has come about after how secretly Facebook has worked on their Project Libra (codeword). They build a blockchain research team without much noise bring concerns to the committee. Since then, the company has posted many job listings for their team and big names such as a crypto economist, Christian Catalini, a researcher with MIT, have also joined the project.
Facebook is aggressively raising fund for their project, and it is reported that the company has managed to raise almost $1 billion for the project to use as collateral to back a stable coin.