The Advancements Being Made When the US Senate Banking Committee Demands Facebook Crypto Transparency

For some weeks information about Facebook-based crypto has been flying around. The cryptosphere is not the only one asking questions about this coin as the U.S. Senate banking committee has also gotten interested.

The Committee on Banking, Housing, and Urban Affairs of the United States Senate wrote an open letter to Facebook founder and CEO, Mark Zuckerberg on May 9 asking for more details on the crypto project the company had been keeping secret.

The Senate was particularly concerned about consumer protection. Facebook had been involved in a controversy that fingered the social media platform in a privacy sell out scandal. The committee asked Zuckerberg if consumer information would be sold or shared with third party affiliates.

The concerns about privacy originated from issues regarding how the social media and messaging platform collects data. One of such methods that was revealed last year includes

Facebook asking U.S banks to share personal information about their clients.

These worries were championed by Ohio Senator, Sherrod Brown and Idaho Senator, Mike Crapo who are first and second-ranked members respectively of the Senate Committee on Banking, Housing, and Urban Affairs. The duo sent a letter to CEO Mark Zuckerberg and sought answers to the following questions.

• 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.

The news about a proposed Facebook cryptocurrency has been flying around since December 2018. The information has it that Facebook plans to utilize the token as a means of payment on WhatsApp, Instagram and even on Facebook. Reports also have it that Facebook is seeking to partner with credit card companies in a bid to raise $1 billion for its crypto coin project.

Do you think the move made by the U.S. Senate will help secure users privacy with the proposed Facebook coin?