The Facebook ‘Crypto Project’ Draws the Attention of US Senators

The social media giant Facebook has recently put itself firmly on the radar of the U.S. Senate Banking Committee who are clearly concerned by Mark Zuckerberg’s new cryptocurrency project, and how Facebook is treating individual’s financial information.

An open letter was written to Facebook CEO, Mark Zuckerberg on Thursday, asking him to share details about the recently leaked and secret crypto-currency project. The letter emphasised concerns about consumer privacy.

In the letter, the committee stated that “Last year, Facebook asked U.S. banks to share detailed financial information about consumers,”

The letter further went on to say that:

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.

As a result of this, The US Senate Banking Committee have asked the Facebook CEO to outline how the ‘crypto project’ would work, what outreach has been done to financial regulators and what users could expect from its terms of privacy and consumer protection.

As an extension, the committee has also asked what consumer financial information has been shared by banks and other financial institutions, what Facebook does with this information and has also asked if Facebook has a credit rating or other personal information about individuals.

It is unsurprising to see Facebook receive such attention following reports that the company Is seeking $1 Billion investments in order to launch its own stable-coin crypto currency. Little is known about the project, dubbed ‘Project Libra’ but with such a vast user count, further probes into the business are likely.

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