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Recently, the cryptocurrency community was very excited following the news regarding the incursion of the social media giant, Facebook, into the crypto industry, via a new project that could present the benefits of digital currencies to billions of platform users.
Although it was certainly a bullish sign that many analysts saw as the incarnation of the traditional adoption of nascent technology, the US Senate is now investing in the project and recently sent an open letter to the company for him ask to reveal much more information about the project, which currently remains somewhat mysterious.
Facebook must answer several questions about the Crypto project
In a recent letter from the US Senate Committee on Banking, Housing and Urban Affairs, the committee asked the technology giant to explain the project in more detail, particularly with respect to the project's impact on the project. digital privacy of users.
The letter, which is particularly directed to Facebook founder and CEO Mark Zuckerberg, also discusses the possibility of Facebook being submitted to the Fair Credit Reporting Act, which, according to the Federal Trade Commission, guarantees that:
"The banking system depends on a fair and accurate credit reporting …" and uses a "elaborate mechanism [that] has been developed to study and evaluate the creditworthiness, credit quality, credit capacity, reputation and general reputation of consumers. "
On this note, one of the questions asked by the committee is whether Facebook has been in contact with financial regulators to ensure that their cryptographic framework complies with "all legal and regulatory requirements".
It is important to note that this letter indicates that the regulation remains an obstacle that crypto must overcome before it can be adopted by the general public, because large companies seeking to adopt the technology will probably have to face a strong involvement of the government and regulatory authorities, which may prevent the speed with which cryptographic-based infrastructures can be developed and published for public use.
Concerns over privacy breaches and Facebook's size continue to grow
Another key element of the letter concerns the protections that Facebook will provide to ensure the security of any personal data that may be exposed as a result of the use of the encrypted payment system.
"What consumer protections and privacy would users have with the new payment system?" Asked the committee.
Chris Hughes, one of the co-founders of the company, called for the dissolution of the company and expressed his concern about Facebook's ability to exploit his personal data. He stated in a recent article in The New York Times that:
"The company's mistakes – the looser privacy practices that have brought down tens of millions of user data on the lap of a political consulting firm," referring to the Cambridge Analytica scandal.
Hughes added that "Mark's influence is staggering, far beyond anyone's in the private sector or the government," and concluded that it was "time to break Facebook."
As Facebook continues to grow and venture into relatively new technologies, such as crypto, in order to fuel their continued growth, it is likely that calls for the dismantling of the technology giant will continue to triumph, and that the government will only intensify. regulate emerging technologies.
Selected image of Shutterstock.
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