Facebook’s secret cryptocurrency project will not remain a secret forever but faces an opposition that could bring it to limelight sooner than its founders want.
On May 9, the U.S Senate Banking Committee wrote an open letter to Facebook’s CEO, Mark Zuckerberg asking for more detailed information about the underground cryptocurrency project going on at his firm.
Explicitly, the Committee expressed concerns regarding consumer privacy noting that last year, Facebook asked U.S banks to share detailed information about their customers, albeit already significant issues regarding the extent to which the social media platform collects user data.
The Committee also mentioned concerns regarding whether Facebook’s extensive data collection practices mean that they should be subject to the Fair Credit Reporting Act.
These worries are thus, the foundation on which the Committee asked Facebook’s CEO to provide them with information such as:
- How the proposed Facebook cryptocurrency-payments system works and what effort the firm has made to reach out to financial regulators.
- What privacy and consumer protection would be available to users
- What consumer financial information Facebook has already received from financial companies and how it is using and protecting such data.
- Whether Facebook has obtained information regarding the creditworthiness of prospective users as well as other related data.
Meanwhile, as Coinfomania has reported in the past, Facebook’s cryptocurrency project began last year with further information gathered by mainstream media revealing that the planned cryptocurrency is a stablecoin that will help WhatsApp users transfer money.
More recently, it was also discovered that Facebook is seeking partnership with credit card companies and other firms with the target of raising $1 billion for the project.
With regulators now on their heels, it is very likely that Facebook will have to let the cat out of the bag about one of the most-waited secret crypto projects.