US Senators Ask Mark Zuckerberg For Details About Facebook’s Secret Crypto Project

News | May 13, 2019 By:

The US Senate Banking Committee has sent an open letter to Facebook CEO Mark Zuckerberg asking him to share the details of Project Libra, Facebook’s cryptocurrency project.

Recent reports indicate that the social media giant’s blockchain division, which was launched in May 2018 and headed by former PayPal president David Marcus, has been working to develop Facebook’s own stablecoin that will be pegged to a basket of different foreign currencies and make it easy for users to send money to each other and make online payments. Reports have also suggested that Facebook was trying to raise as much as $1 billion from investors to facilitate development.

In its open letter, the US Senate Banking Committee asked Zuckerberg how Facebook’s crypto-based payment system would work, “and what outreach has there been to financial regulators to ensure it meets all legal and regulatory requirements.” The committee also wants to know “what privacy and consumer protections would users have under the new payment system.”

According to the letter, last year, Facebook asked US banks to share detailed financial information about consumers. In addition, privacy experts have raised questions about Facebook’s extensive data collection practices and whether any of the data collected by Facebook is being used for purposes that do or should subject Facebook to the Fair Credit Reporting Act.

Based on this, the committee is interested in knowing the extent of such information received by Facebook, and how does Facebook safeguard the information?

The committee also enquire whether Facebook has or uses information about “creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living” to determine eligibility for marketing of products “related to (1) credit, (2) insurance, (3) employment, or (4) housing.”

Furthermore, the committee asked the social media giant about the steps it uses to ensure that the aforementioned information isn’t used “in violation of the Fair Credit Reporting Act.”