Facebook has not released anything about it yet: Project Libra. The US Senate has also heard of Facebook’s plan to launch a stablecoin and payment network. And it is worried about that.
The “US Senate Banking Committee” wrote an open letter (PDF) to Facebook and founder Mark Zuckerberg. It asks for information about mysterious cryptocurrency plans: Project Libra.
The letter states that “Facebook asked US banks for financial data from customers last year.” In addition, “privacy experts have asked questions about how Facebook collects data”. The activities of the social media giant might fall under the ‘Fair Credit Reporting Act’ (FCRA).
Under the banner of ‘concerns for privacy’, the committee wants Zuckerberg to open a book about Facebook’s crypto plans. How it works, to what extent Facebook has already contacted regulators, and what users can expect in the context of privacy and customer protection.
Facebook as a bank?
The letter contains more general questions about the position that Facebook will fulfill, including:
- What information has Facebook received from banks and financial institutions?
- What does Facebook do with that information?
- Does Facebook have a credit rating?
- How does Facebook avoid violating the FCRA?
It is interesting that the questions are asked via the Senate banking committee. There are therefore sounds that people are not only concerned about the privacy of people, but also about the role that Facebook can play in society: that of the bank. With 2.38 billion (!) active users in March 2019, Facebook has a lot of potential ‘customers’.
For the time being, nothing has been reported about Libra from Facebook. What the plans are exactly, therefore, remains guesswork.