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4 months ago

Hearing on Facebook’s Libra Crypto scheduled for July: Senate Banking Committee

Following U.S lawmakers (members of Congress) call for a hearing regarding Facebook’s new cryptocurrency, Libra, the U.S. Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing on July 16.

For a close examination of Libra and its potential risks the hearing will be for, “Examining Facebook’s Proposed Digital Currency and Data Privacy Considerations,” and consequently, work on the project, until after hearings, have been halted.

All that has been reported is that a Facebook representative said that “we look forward to responding to lawmakers’ questions as this process moves forward.” Facebook has given no other official direct response regarding all the rise tongues of scrutiny other than the white paper of the Libra coin it unveiled two days ago. The scheduled July 16 meeting is expected to be broadcast to the public and will be held at 10 a.m. EST. However, no information about witnesses has been released.

Information leading to the hearing

The Banking Committee had earlier last month wrote an open letter to Facebook seeking answers about its work on Libra; it included questions centered around how it works and to what extent the social media giant has sought input from regulators and market watchdogs. Other more specific questions:

  1. What consumer financial information does Facebook have that it received from a financial company?
  2. To the extent that Facebook has received such information, what does the company do with it and how does it safeguard the data?
  3. Does Facebook have any information bearing on an individual’s (or group of individuals’) creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living that is used (either by Facebook or an unaffiliated third party) to establish eligibility for, or marketing of a product or service related to, credit, insurance, employment or housing?
  4. How does Facebook ensure that such information is not used in violation of the Fair Credit Reporting Act?

Since Facebook hadn’t directly responded to the ‘letter of questions’ before the unveiling and till present, different lawmakers’ concerns have heightened and the hearing has been enforced.

Committee member and 2020 presidential candidate Sen. Elizabeth Warren wrote in a tweet that “Facebook has too much power and a terrible track record when it comes to protecting our private information. We need to hold them accountable—not give them the chance to access even more user data #BreakUpBigTech.” This was after today’s hearing news broke.

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Credits- Wolfie Zhao

Anita O.

Lover of tech and blockchain.

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