Facebook Has Yet to Answer US Lawmakers

Facebook is still operating on its responses to a plethora of patron safety questions about the Libra cryptocurrency requested through a set of U.S. Senators remaining month.

The Senate Banking Committee wrote an open letter to Facebook at the beginning of May, asking the social media massive a number of questions about Libra, after word of the project leaked out within the press. The questions typically targeted round person privateness and statistics safety, though a few concerned the cryptocurrency community itself.

After months of hypothesis and rumors, the organization officially unveiled its vision for Libra on Tuesday – however it has not but submitted a response to the letter.

“We obtained the letter and are addressing the senators’ questions,” a Facebook spokesperson told CoinDesk Tuesday morning.
Early clues

To make sure, the documentation Facebook published offers a touch of what the solutions to some of the committee’s questions are probably.

Take, as an example, the senators’ first questions:

How would this new cryptocurrency-based totally charge system paintings, and what outreach has there been to financial regulators to ensure it meets all criminal and regulatory necessities?
What privateness and customer protections could users have below the new fee machine?

Facebook’s new Libra white paper and supporting documentation outline the mechanism for the basket of fiat currencies and authorities securities that returned the Libra token, in addition to the Libra investment token that gives its governance council the ability to monitor and regulate the community and its protocols.

Moreover, Facebook said in different documentation that it, or as a minimum its new Calibra subsidiary, would secure money transmitter licenses in numerous U.S. States that treat cryptocurrencies as cash. Calibra has additionally registered as a cash offerings enterprise (MSB) with the Financial Crime Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. (Though it’s miles a criminal requirement for groups engaging in financial transactions, registering as an MSB does no longer indicate any type of regulatory approval.)

Calibra says it’s going to also abide by European Union and Financial Action Task Force (FATF) suggestions, as well as the laws of each jurisdiction it gives services in. Facebook has additionally reportedly held talks with the Commodity Futures Trading Commission (CFTC) approximately Libra.

The Senators also requested if Facebook stocks or sells any patron statistics (or statistics derived from such statistics) with any unaffiliated 1/3 events. Company literature says that neither Facebook nor Calibra will achieve this without consent from the consumer.
Stay tuned

Still, the senators may also need extra exact solutions to those questions and others, particularly:

What consumer economic facts does Facebook have that it acquired from a financial corporation?
To the extent that Facebook has obtained such information, what does the corporation do with it and how does it shield the facts?
Does Facebook have any facts concerning an individual’s (or institution of people’) creditworthiness, credit standing, credit capability, man or woman, preferred popularity, non-public traits or mode of residing that is used (both by means of Facebook or an unaffiliated 0.33 birthday party) to establish eligibility for, or advertising and marketing of a product or service associated with, credit, coverage, employment or housing?
How does Facebook ensure that such data is not used in violation of the Fair Credit Reporting Act?

The senators’ letter did no longer deliver a closing date for Facebook to respond, and it is unclear when the solutions will be despatched.

Facebook posted plans for the Libra cryptocurrency in seven languages, including Indonesia’s Bahasa – a flow that gives perhaps the clearest glimpse of what Facebook’s fintech ascent may appear like.

“Indonesia has the fourth-highest variety of Facebook users in the international,” Pang Xue Kai, co-founder of the Indonesian crypto exchange Tokocrypto, advised CoinDesk. “If Facebook’s Libra can address the [local] issues, it has the capability to succeed.”

According to the yearly media document launched with the aid of We Are Social and Hootsuite, Indonesia has the arena’s maximum charge of Facebook post engagement among net users, over 4 percentage, and the best frequency of online purchasing, with 86 percent of Indonesian survey respondents saying they sold something online in the past month.

Since nearly 10 percent of Indonesian respondents said, in addition, they own some cryptocurrency, double American percent, Facebook couldn’t have dreamed up a higher marketplace for Libra.

QCP Capital co-founder Joshua Ho, a trader who works carefully with Indonesian exchange Tokocrypto, advised CoinDesk Facebook’s Libra environment might be a “gamechanger” in Indonesia.

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