For the past few weeks, Live Bitcoin News has been actively reporting on Facebook. The company is developing a new cryptocurrency called “Facebook Coin” that it says account holders can use through its upcoming crypto-based payment platform to pay for goods and services.
What’s Happening with Facebook Coin, Now?
That platform will be known as the “Libra Network,” and it will also allow customers to use Facebook Coin to pay for items with other merchants that boast Facebook login options on their websites. Executives are allegedly pursuing more than $1 billion in investments to make the network a reality within the next two years.
Facebook clearly isn’t happy being a simple social media network. It wants to be something much bigger. Now, new reports have emerged from Reuters and other sources that allege the Libra Network will be developed in Switzerland, a country renowned for its financial dealings and banking security.
Libra was registered in Geneva, Switzerland on the morning of Thursday, May 2, 2019. Facebook Global Holdings (FGH) will be the primary stockholder in the company. According to Reuters, FGH will “provide financial and technological services and develop related hardware and software plans that will be submitted to the Swiss register reveal.”
The company has been working hard to roll out its crypto plans at an even pace. On May 14, the company announced that it would be bringing two compliance managers from Coinbase on board to ensure it stays in line with all legalities and regulations involving cryptocurrency. Coinbase is one of the largest and most popular cryptocurrency exchanges in the United States.
This all sounds fine and dandy, but Facebook’s crypto plans have rubbed certain members of Congress the wrong way. Recently, several wrote to Mark Zuckerberg and other Facebook executives for specific details regarding its rollout of the Libra Network, citing the previous Cambridge Analytica scandal as the reason for its inquiry. Senators were curious how Facebook plans to monitor activity and keep users’ private financial data safe.
In an open letter, various members of Congress wrote:
The Wall Street Journal recently reported that Facebook is recruiting dozens of financial firms and online merchants to help launch a cryptocurrency-based payments system using its social network. Last year, Facebook asked U.S. banks to share detailed financial information about consumers. 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.
Facebook Remains Silent
Facebook later released a statement regarding its plans. While no specifics were given, the statement read:
Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. Our new [small blockchain] team is exploring many different applications.