As a Reuters report, Facebook registered a new fintech organization, Libra Networks, in Geneva on May 2, which coincides with the launch of its digital currency.
Project Libra
Facebook Global Holdings is an investor in the new organization, according to Reuters:
Provide financial and technology services and develop related hardware and software, plans submitted on the Swiss register reveal.
Facebook has mainly operated the project undercover. This includes the guidelines around the digital currency, known to be Libra or FBCoin. The online social media giant set up its group in May 2018 to investigate and explore the rising innovation of blockchain and cryptocurrencies. It’s been noted that Facebook’s team consisted of at least 20 blockchain experts, including a lead business counsel.
Little is known about Facebook’s “blockchain investigate group.” We do know that it started a year ago and that it’s headed by their V.P. and previous Coinbase board member, David Marcus.
U.S. Officials Requests
The Libra project has undoubtedly shaken people in Congress who are watching the cryptocurrency trends and the tech giants closely.
A week ago, the U.S. Senate Banking Panel wrote an open letter to Facebook’s organizer president Zuckerberg, in an attempt to receive information about the digital currency venture, with a specific spotlight on customer security. It may lead Mark Zuckerberg to testify in Congress one more time about his initiatives in blockchain and cryptocurrencies.
Privacy experts have raised questions about Facebook’s extensive data collection policy and if any data collected by Facebook is being used for immoral purposes that should subject Facebook to the Fair Credit Reporting Act.
As indicated by the official statement by Reuters, the CEOs of Whatsapp and Instagram have been under administrative examination over privacy protection issues.
Facebook so far has refused to give statements on the new organization, which is making headlines in financial and entrepreneurship news.
Prospects
Being a trustworthy name in Silicon Valley and probably the owner of the worlds biggest data, Facebook is going to be a big player in cryptocurrency, blockchain, and fintech very soon. It is undoubtedly clear that journalists, investors, and traders are excited to see how it rolls. However, at this stage, the remarks have not been affirmed by Facebook or any potential financial specialists. Nonetheless, Libra Networks is a big leap by Facebook in technology.
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