The most important and largest social networking giant, Facebook, announced the launch of its new digital currency “Libra” next year, where a number of famous companies such as “Visa”, “PayPal” and “MasterCard”, thus competing with the Bitcoin currency, and this raised Many new fears of Facebook having tightened its control over social media.
Facebook’s cryptocurrency, Libra, facilitates the movement of money around the world. Speculators are always looking for the most painful side effects of the past 10 years of unconventional monetary policy. In the latest gap – be it emerging markets, commodities, or high-risk bonds. That is why some countries, including Brazil and Thailand, have resorted to capital controls to stabilize their financial systems. ”
Facebook wants to do exactly the opposite – to facilitate global capital flows through a digital currency operating outside the existing central bank, and the goal of this currency is to facilitate the declared movement “global, open, immediate”, based in Switzerland.
There are many different contradictions in the Facebook statement and also the technical and organizational obstacles that have yet to be overcome to launch its new crypto currency, Libra.
What is Libra?
It is a digital currency, non-profit, encrypted Facebook, and a modern financial system, to transform the way in which money moves in the world and send and receive in a simple way, and not only in its own applications, and is based in Geneva, Switzerland, and this means that it is not managed by the company Facebook in the States It is managed by the Center of the Global Financial System, and any company, service or developer around the world can use it and deal with it, and Facebook has no right to prevent any person or entity from using “Libra”, and does not have the authority to do so.
As the encrypted version of community lending, Libra is helping all people around the world pay more for a variety of things in the real economy.
Concerns about the launch of Libra
Facebook acknowledged that the initiative to introduce the new cryptocurrency “Libra” raised opposition and fears from many governments and regulatory authorities, and is expected to continue these concerns.
Fears of Britain began to launch Facebook for its new digital currency, and members of the British Parliament are considering, to open an investigation into the new digital currency that Facebook is preparing to launch, after raised concerns that the work of this currency may be subject to fraud, and this came after last week showed members In the US Senate, their reservations about the Blue Site Project.
Damien Collins, chairman of the House of Commons’s Committee on Information, Culture and Sports, said he feared this. “Facebook is trying to make itself,” said Damien Collins. State, as the British official pointed out that the new digital currency “Libra” and its payment system, is difficult to supervise, and may be vulnerable to fraud and fraud, as the British Parliament accused the site “Facebook”, that he acts as a digital gang, because according to lawmakers The British, violate the privacy laws Anat in Britain. “
France also announced its concerns about the introduction of the new digital currency “Libra”, when it formed a group of the Group of Seven, a meeting of finance ministers from the Group of Seven industrialized nations, whose task will be to reveal how central banks can ensure that the cryptocurrencies abide by rules and regulations Necessary, consumer protection, prevention of fraud, fraud and fraud.
According to the Reuters news agency, the governor of the French central bank, Francois Villeroy de Galhau, pointed to the encryption team, which will be chaired by Benoit Coeur, a member of the board of the European Central Bank, and will discuss how to organize crypto currencies to prevent many problems, including Money laundering, France does not mind the existence of the new currency “Facebook”, but mind that the sovereignty of this currency becomes stronger than traditional currencies.
England is thinking about the same thing, as it wants this currency to be safe for banks as well as users, and of course subject to the control of central banks.
A former Bank of Japan executive warned that central banks may see the impact of their monetary policies diminished if the cryptocurrency “Libra” becomes widely used in their countries.
Global policymakers have raised concerns about Facebook’s plan to issue cryptocurrencies, worried that the technology giant’s ambitions for a new global currency could weaken their control over monetary and banking policies.
“If Libra becomes more widely used than the sovereign currency of a given country, monetary policy could be severely affected,” said Hiromi Yamaoka, former head of the Bank of Japan’s department of payment and settlement systems.
Although Hiromi Yamaoka did not say whether he believed Libra would succeed as a crypto currency, its adoption could accelerate capital flight in countries where market confidence in their currencies is low, as it gives users an easy way To transfer money.
“It will not be a big problem for countries with strong market confidence in their currencies,” Hiromi Yamaoka said. “However, the emergence of Libra will put pressure on policymakers to discipline themselves and make sure that they are not taking measures that undermine the value of their currencies.”
Privacy commissioners from the Americas, Europe, Africa and Australia put their names in a joint statement that raised concerns about Facebook’s lack of clarity on how to protect data protection guarantees in its planned currency encryption project, Libra.
The Office of the Information Commissioner (ICO) also raised privacy concerns about the new cryptocurrency. Information Commissioner Elizabeth Dunham signed a statement along with her counterparts from the United States, Canada, Australia and the European Union in which they expressed “common concerns about the privacy risks posed by the Libera cryptocurrency. The statement calls on Facebook to provide further details. L about how to protect user data.
Facebook has announced a new branch for its company, which said it would create financial services for the Libra currency, including introducing a standalone wallet application expected to be included in messaging, messenger and WhatsApp applications, raising concerns that it could quickly gain a monopoly on what is considered. It serves as an “open” cryptocurrency, given the dominance of the associated social platforms where it intends to plant its own portfolio.
Facebook avoided any talk of how much market power it might have by being able to promote the portfolio to its existing 2.2 billion users, but did not touch privacy “We will also take steps to protect your privacy” by claiming that it will not share “account information or financial data with Facebook” Or any third party without the consent of the customer. ”
Facebook said there will be “limited cases” when user data is shared, adding that these cases “will reflect our need to keep people safe, comply with the law, provide basic functionality to people using Libra, and provide Libra’s client commitment with more details, such as“ blocking Fraud and criminal activity. ”
All this may seem sufficiently reassuring on the periphery, but Facebook has used the vague notion of having to keep its users “safe” as a comprehensive justification for tracking non-Facebook users across the entire Internet.
Thus, the lack of comprehensive details about the Libra approach to privacy and data protection is of concern to professional regulators worldwide.
Many authorities and Democratic lawmakers have expressed concern about this initiative. These risks are not limited to financial privacy, because Facebook’s participation, and its broad categories of data collection on hundreds of millions of users, raise additional concerns. Data protection agencies will also work closely with other regulatory bodies. “
Among the commissioners who signed the statement, Rohit Chopra of the Federal Trade Commission, one of the commissioners of the US Federal Trade Commission who opposed the settlement of $ 5 billion order , which was adopted , by 3: 2 last month.
There are also concerns about Facebook’s transparency about how Libra complies with privacy laws and expectations in several jurisdictions around the world: Canada’s Privacy Commissioner Daniel Thurien; EU Data Protection Supervisor; Giovanni Butarelli; UK Information Commissioner, Elizabeth Dunham; Commissioner for Information and Data Protection in Albania, Besnik Druishi; Chairman of the Committee on Information Technology and Civil Liberties of Burkina Faso, Margaret Ouedraogo Bonan; and Commissioner for Information and Privacy of Australia, Angeline Falk.
Facebook may not be able to launch Libra?
The “Facebook” has long ago announced its desire to launch a new digital currency called “Libra” in dozens of countries at the beginning of the first three months of next year, with a pilot by the end of this year.
In a statement to the US Capital Market Authority, Facebook said it could not confirm the launch of the Libera currency or related products and services, according to the proposed timetable, and is likely not to be launched at all.
Facebook faces new difficulties in terms of regulation and modern technology, with no clear rules to regulate the circulation of cryptocurrencies in America and other countries.
And acknowledged “Facebook” that the initiative to introduce cryptocurrency “Libra”, raised many concerns as well as opposition by many governments and regulatory authorities, and is expected to continue these concerns.
The working group, led by Benoit Coeur, a member of the ECB’s executive board, warned that a “huge effort” was needed from developers of stable currencies, such as the digital currency “Libra”, “before considering approval by the relevant authorities”.
Benoit Corre, who chairs an international working group on Libra, said Facebook’s global scope meant that cryptocurrency should be safe, robust and flexible from the first day of its release. Or fail. ”
The organizers fear that the new cryptocurrency “Libra”, which in its original design will allow its users to transfer money using a pseudonym, may be used in many functions such as money laundering or terrorist financing.
Facebook said it would not put up its troubling currency, Libra, which it plans to develop in cooperation with dozens of partner companies until it addresses the concerns of regulators and regulators, according to the company’s project manager.
In a file submitted to the Securities and Exchange Commission, Facebook wrote: “The new cryptocurrency“ Libra ”has received intense scrutiny from governments and regulators in multiple jurisdictions and we expect this to continue.” Digital is highly vulnerable to non-stress. As such, there can be no guarantee that the cryptocurrency “Libra” or its associated services will be provided in time, or at all ”
David Marcus, president of Facebook’s Libra, who provided evidence to the Senate Banking, Housing and Urban Affairs Committee last month, said he understood “loud and clear” that people did not want financial details linked to their social media data. Mark Carney, governor of the Bank of England, cautiously welcomed the cryptocurrency, saying the bank “is approaching Libra with an open mind but not an open door.”
There are several questions about the Libra cryptocurrency:
1. How can data protection and global privacy organizations be confident that Libera has strong measures to protect the personal information of network users? In particular, how will Libra ensure that its participants are given clear information about how personal information is used (exchange of personal information between Libra members and any third parties).
– Create default privacy protection settings that do not use payment technologies or “dark patterns” to encourage people to share personal data with third parties or weaken their privacy protection.
– Ensure privacy settings are prominent and easy to use.
– Collect and process only the minimum amount of personal information necessary to achieve the specific purpose of the product or service, and ensure the legality of the processing.
– Ensure that all personal data is adequately protected.
– Give people simple procedures to exercise their privacy rights, including deleting their accounts, and meeting their requests in a timely manner.
2. How will Libra integrate privacy through design principles in developing its infrastructure?
3. How will Facebook ensure that all data processors within Libra are identified and compliant with its data protection obligations?
4. How does Libra plan to conduct data protection impact assessments, and how will Libra ensure that these assessments are continuously considered?
5. How will Libra ensure that its data protection policies, standards and privacy are consistently applied across Libra’s operations in all jurisdictions?
6 – When sharing data between members of the company “Libra”:
a. What data elements will be involved?
B. To what extent will the identification be revoked, and what method will be used to achieve the identification?
C. How will Facebook ensure that Libra does not redefine the data, including by using enforceable contractual obligations with the people with whom the data is shared?
In the current digital age, organizations need to be transparent and accountable for their practices in handling personal information. Good privacy governance and privacy by design are key enablers of innovation and data protection – they are not mutually exclusive, yet Facebook has made statements. A general overview of the privacy of the new cryptocurrency “Libra”, however, has failed to address the information processing practices that will exist to secure and protect personal information.