The U.S. Senate Banking Council is clearly concerned about Facebook’s new cryptocurrency project and how it is treating individuals’ financial information.
The banking committee penned an open letter to Facebook founder and CEO Mark Zuckerberg Thursday, asking him to share details about its secret cryptocurrency jut out, with a particular focus on consumer privacy.
“Last year, Facebook asked U.S. banks to share detailed pecuniary information about consumers,” the letter says:
“In addition, privacy experts have raised questions about Facebook’s sizeable data collection practices and whether any of the data collected by Facebook is being used for purposes that do or should participant Facebook to the Fair Credit Reporting Act.”
In light of these concerns, the committee wants Zuckerberg to outline how the Facebook cryptocurrency, referred to guardianship the codename of “Project Libra,” would work; what outreach Facebook has done to financial regulators; and what owners can expect in terms of privacy and consumer protection.
More broadly, the committee has asked Facebook to share what consumer monetary information has been shared by banks and other financial institutions; what Facebook does with that dope (including whether that information is shared or sold to other third parties); whether Facebook has credit valuation and other personal information about individuals; and how Facebook avoids violating the Fair Credit Reporting Act.
Little is recollected about Project Libra. The company quietly began building up a blockchain research team last year, steered up by vice president and former Coinbase board member David Marcus.
The company has posted numerous job listings for the troupe since, and notable figures in the space such as crypto economist Christian Catalini, a researcher with MIT, have also joined the launch.
The company is reportedly looking to raise as much as $1 billion for the project to use as collateral to back a stablecoin.
Mark Zuckerberg idea via Frederic Legrand – COMEO / Shutterstock