The US SenateBanking Committee (USSenateBankingCommittee) is clearly concerned about Facebook's new cryptocurrency program and how to handle personal financial information.
The Banking Committee wrote an open letter to Facebook founder and CEO Zuckerberg on Thursday asking him to provide details about his secret cryptocurrency project, with a particular focus on consumer privacy.
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“Last year, Facebook asked US banks to disclose detailed financial information for consumers,” the letter said:
"In addition, privacy experts have questioned Facebook's extensive data collection practices and whether any data collected by Facebook is used or should be made to comply with the Fair Credit Reporting Act."
In light of these concerns, the committee hopes that Zuckerberg will outline how Facebook's cryptocurrency (codenamed "Libra Project") will work; what Facebook has done to financial regulators; and users' expectations for privacy and consumer protection.
More broadly, the committee asked Facebook to disclose consumer financial information shared by banks and other financial institutions; what Facebook did with the information (including whether it was shared or sold to other third parties); whether Facebook has credit ratings and other Personal information about Indivi. And how Facebook can avoid violating the Fair Credit Reporting Act.
At present, the public knows very little about the Libra project. The company quietly began building a blockchain research team last year, led by David Marcus, vice president and former Coinbase board member.
Since then, the company has released a large list of jobs for the team, and MIT philosophers and cryptic economist Christian Catalini have joined the project. .
According to reports, the company intends to raise up to $1 billion in funding for the project as a mortgage to support a stable economy. (chain to finance)