Regulators in the US were especially against it; it was visible in the two Senate Hearings with David Marcus this month. Nevertheless, even countries like the UK, France, Germany, etc. were against the idea.
Moreover, the most critical questions put against Libra were based on privacy concerns. Facebook’s image in handling user data and privacy has acted as a negative precedent for Libra. Currently, Facebook is the final phases of settling a previous charge that accused Facebook of wrongfully meddling in 2016 US Presidential elections.
The Libra Association chose Geneva, Switzerland as its base camp because it provides a complete regulatory framework on it. The Swiss Watchdog, Swiss Federal Data Protection and Information Commissioner (FDPIC), oversees the customer data protection dept.
Reportedly, the Commission has not yet received Facebook’s design on how they will protect customer data. The Swiss Watchdog is also expecting an impact assessment report for Libra regarding the above concerns and evaluate the risks associated with them.
The watchdog told the media,
“The FDPIC stated in its letter that as it had not received any indication on what personal data may be processed, the Libra Association should inform it of the current status of the project so that the FDPIC could assess the extent to which its advisory competences and supervisory powers would apply”
The Commission sent a letter on the 17th July 2019 to the Libra officials regarding the pending report. Facebook has not yet commented on the issue.
Facebook’s vision with cryptocurrency seems to be looming in the dark; this is primarily because of its image in data handling; hence, trust issues. Moreover, it has a user base of more than 2.3 billion all over the world. Therefore, if released, it is highly likely that it would catch on with the crowd. The regulators are highly apprehensive of its economic and social impact.
Do you think that distributed ledger tech. will aide in clearing privacy concerns? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com