Facebook’s Libra cryptocurrency may change the financial world, but authorities around the globe worry it might infringe on people’s privacy.
Authorities from the UK, Australia, the USA, Canada, Burkina Faso and Albania, as well as the EU’s European Data Protection Supervisor have signed an open letter asking the social media giant to be more transparent about its digital currency and its infrastructure.
Elizabeth Denham is the UK’s information commissioner, the country’s independent privacy regulator. She stated. “The ambition and scope of the Libra project has the potential to change the online payment landscape, and to offer benefits to consumers. But that ambition must work in tandem with people’s privacy expectations and rights.
“Facebook’s involvement is particularly significant, as there is the potential to combine Facebook’s vast reserves of personal information with financial information and cryptocurrency, amplifying privacy concerns about the network’s design and data sharing arrangements.
“We know that the Libra Network has already opened dialogue with many financial regulators on how it intends to comply with financial services product rules. However, given the rapid plans for Libra and Calibra, we are concerned that there is little detail available about the information handling practices that will be in place to secure and protect personal information.
“I hope this statement will prompt an open and constructive conversation to ensure that data protection is a key part of the design process and that data protection regulators are a key consultative group as the Libra proposals develop.”
Copyright © 2018 RegTech Analyst
