Facebook Data Hunt Raises Questions For Which US Senate Demands Answers About Crypto Plans

Facebook Data Hunt Raises Questions For Which U.S Senate Demands Answers

In preparation ahead of its scheduled cryptocurrency launch, Facebook has been gathering information from financial institutions in the U.S. The social network giant has reportedly requested detailed financial information on customers of banks in the country, apart from its recruitment of financial firms and online merchants.

It is the interest in personal financial information of bank customers that has drawn the attention of the senate which has in turn requested answers to certain questions from the founder of Facebook Mark Zuckerberg. The Senate Banking Committee’s Chairman and Ranking Member had earlier this year written to Zuckerberg, requesting answers on the data collection and its use.

The founder was asked to respond to seven key questions to give the senate insight into the cryptocurrency project that is to be launched for Facebook’s millions of users as well as to determine if the company will treat users’ private and sensitive information with the respect and the care it deserves in a world where privacy is at stake.

Some of the answers required touch on how the new cryptocurrency system will work and the efforts Facebook has made to ensure the system will meet regulatory standards. The senate also seeks to know how Facebook will ensure that information on individual/group’s creditworthiness, credit standing, credit capacity, character, general reputation, and/or personal characteristics is not used in such a manner that violates the Fair Credit Reporting Act.

Meanwhile, Facebook is already working on partnership with online merchants who will accept payments with the new cryptocurrency known as Global Coin, with subsidized transaction fees in order to encourage adoption and use. The company has also met with a number of key personalities to ensure legal compliance of the project, some of which are Governor of the Bank of England, Mark Carne, the officials in the US Treasury and the Winklevoss who own Gemini Exchange.

Global Coin is to be used in a payment system that is already registered in the blockchain hub country Switzerland and is to be available to 12 countries upon its launch in Q1 of 2020.

Experts in the cryptocurrency space believe this will bring a lot of adoption to the industry and is a potential ticket to mainstream adoption as Facebook has several million active users. Other non-financial companies such as Telegram are also working on their own cryptocurrencies and these will be very good in popularizing cryptocurrency, the experts say.

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