Facebook is about to launch its own cryptocurrency called Libra. The coin is expected to be launched in the year 2020. But global regulators are already against the launch of Facebook’s Libra for user privacy concerns.
Facebook’s Libra is poised to be of great advantage to the people, especially people in third world countries. Plus, it’s supposed to bring popularity to the cryptocurrency world due to Facebook already-established popularity.
World Regulators against Facebook’s Libra
Global regulators are concerned about Libra because of Facebook involvement in the project. Regulators are concerned about how Libra will handle data privacy because this is something Facebook has been accused of doing poorly over the years.
The British information commissioner’s office alongside the USA, Burkina Faso, Canada, Australia, and Albania’s data protection officials all issued a statement to Libra expressing their concerns about its data protection framework that is planned to accompany its stable coin. In the statement, Facebook, alongside other 28 companies behind the Libra project, was asked to give answers with regards to Libra’s data policies and how it will be in line with data protection laws.
This is the first time that data protection regulators have been concerned about cryptocurrency. They also acknowledged the statement Facebook made on the topic of privacy earlier in the year. But they are concerned that the practices of handling and safeguarding of sensitive information were not addressed. All this was brought about for the sole reason of Facebook past dealings on the issue of user data.
How Different Global Regulators Have Reacted to Libra
Libra, after announcing its launch around June of 2019, has spurred reactions among different global regulators around the world and here is what they have to say on the issue.
- France created a task force just three days after Libra was announced. This was to critically study how cryptocurrencies are governed by regulations and their adherence to money laundering laws and consumer protection rights. Although France is not against Facebook using Libra for financial transactions, they are, however, against Libra being a global currency.
- In the U.K., the U.K treasury, Bank of England and the U.K Financial Conduct Authority (FCA) began to assess Libra shortly after it was announced. However, there were insufficient details about Libra’s business model. The CEO of FCA stated that Libra might be significant. However, it raises a large concern around public policy.
- In Germany, the president of Germany’s central bank made its concern known that cryptocurrency being backed up by official currency could undermine banks in the long run.
This concern was expressed a few days after the announcement of Libra at the Bundesbank conference. However, the statement made was not singling out Libra alone but all cryptocurrencies that are being backed up by official currencies.
There has been no official response from Facebook or Calibra, the Facebook subsidiary charged with launching Libra. The head of Calibra occasionally makes statements about Libra on his Facebook page at https://www.facebook.com/davidm.
The launch of Libra has been projected to be beneficial to a lot of countries and the cryptocurrency world as a whole. A company as large as Facebook giving weight to a cryptocurrency has also brought the attention of world regulators to the cryptocurrency world, making them question the way this cryptocurrency is expected to operate. Only time will tell whether the power of the data regulators is sufficient to make Facebook make a visible public commitment to data privacy.