According to Coindesk's July 10 report, Facebook's blockchain leader David Marcus sent a letter to US lawmakers saying that although the social media giant is suffering from privacy scandals, it will not be from its latest cryptocurrency project. Get personal financial information on (Libra).
(Source: flickr )
In a letter to the Senate Banking Committee on Monday, Marcus responded to the sharp questions raised by lawmakers in May this year. He acknowledged the committee's concerns about Facebook's data privacy and told them:
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I make a guarantee in my own name and we will take the time to do it well.
The US House of Representatives Financial Services Committee also received a similar letter earlier this Tuesday.
Marcus said that any transaction on the Libra blockchain will not be accompanied by personal data.
He reiterated Facebook's commitment and wrote:
Similar to the now widely used cryptocurrencies, such as Ethereum and Bitcoin, transactions on the Libra blockchain are 'anonymous', which means that Libra's user identity is not publicly visible.
The blockchain address, timestamp, and transaction amount in the transaction will be public, but any information about your customer (KYC) or anti-money laundering (AML) must be stored by the wallet provider.
Marcus pointed out that Libra will be an open source platform, and any third-party developer can build their own digital wallet on the blockchain.
These third parties will be responsible for building their own Libra wallets, Marcus explained:
These suppliers will have a responsibility to determine the type of information they need from their customers and to ensure that they comply with the regulations and standards of the countries in which they operate.
He further added:
Regulators of Calibra and other digital wallet services can ask them to collect user identity and activity information and provide this information to law enforcement and regulatory agencies, such as for anti-money laundering, counter-terrorism financing and sanctions purposes.
In response to questions about the financial information that Facebook has about consumers, Marcus writes that the social media giant's subsidiary (another company outside Libra) stores "non-public personal financial information data," such as payment vouchers. Compliance with current laws of the transaction, but this information will not be used for advertising or personal use.
In fact, Facebook Payment Inc is actually processing the above transaction, and Facebook itself does not have access to any payment voucher information, but it collects other information related to the transaction, such as merchant, transaction amount, date and time, and purchased goods.
Create a win-win ecosystem
Marcus told senators that Facebook's blockchain network management committee, the Libra Association, has even less information than Facebook Payment has.
He said that because the processor and wallet are processed and stored, neither Facebook nor Libra will store the user's personal data.
In addition, Facebook has set up a subsidiary to develop an open source wallet called Calibra for Libra. Marcus explained:
Calibra will be Facebook's representative at the Libra Association. As an independent, regulated subsidiary of Facebook, Calibra will protect consumer financial data and will not use it for advertising marketing.
However, Calibra will retain some consumer financial data.
With a few exceptions, Calibra does not share its account information or financial data with Facebook or any third party without the customer's consent.
A few of the situations mentioned above include the purpose of sharing data with law enforcement agencies or regulatory agencies for the purpose of antitrust or anti-money laundering laws.
For example, Calibra's customer account information and financial data will not be used to improve advertising for Facebook or its entire social media and communications products.
When answering questions about personal credit scores, Marcus wrote:
Facebook does not obtain or use consumer reports or credit scores for any purpose.
Last month, Facebook disclosed a detailed plan to create a payment system for individuals without bank accounts, but the plan was immediately obstructed by regulatory and legislative bodies as soon as it was introduced. Members of the world and other government officials have also been questioning this project.
The US Senate Banking Committee is scheduled to hold a hearing on the plan on July 16, and the House Financial Services Committee will hold another hearing the next day. Marcus will attend the testimony at these two hearings.
Marcus said in a letter on Tuesday that the company had contacted financial services companies, regulators, central banks, policy makers, Treasury and Treasury officials, and other groups to further discuss the plan.
Marcus wrote in the letter:
“The Libra Association will work with policy makers and regulators to ensure that this new ecosystem brings more value to the economy and further protects consumers, allowing government regulation and central banks to play an appropriate role. It will also work to promote a global dialogue on how to regulate blockchain and cryptocurrency assets."