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Recently, Facebook has come under heavy criticism for a massive network security breach and the theft of personal data from millions of users. However, in a letter to US senators, the social media giant assured that it would not collect or store data on users of its "cryptocurrency" Libra. It remains to be seen what percentage of the previous statement will be activated.
Facebook Balance Blockchain and its operation
Facebook has proven pathetic experience in dealing with privacy, security and user data. It makes perfect sense to be skeptical about his decision to enter the financial services sector. All the more so when it comes to cryptocurrency and blockchain.
In a letter written by Facebook to David Marcus, president of the channel, before the US Senate Banking Committee, the background and operation of the project were explained. The interesting parts are how the personal information, collected by Facebook in huge quantities, is closely related to the transaction data stored in the blockchain.
When the question about privacy and consumer protection arose, the answer implied that the user's identity would not be tied to the transactions recorded on the Libra blockchain. However, he added that:
"Only relevant data for each transaction, such as the channel address of the sender and the recipient, the timestamp and the amount of the transaction, are recorded and publicly visible."
The letter went on to say that third-party Calibra portfolio providers should store KYC and AML information about their users, adding:
"Regulators of Calibra and other digital wallet services may require that they collect information about the identity and activities of their users and make this information available to the organizations responsible for the collection." 39, enforcement and regulatory bodies, "
Purchase, merchant, amount, date of collection
A question regarding Facebook's consumer financial information has already been answered, vaguely stating that an affiliate called Facebook Payments Inc. handles the transactions. The big question was what Facebook itself was collecting about the spending habits of users and the answer was pretty clear.
Facebook being the platform on which these transactions take place, Facebook Inc. also collects data relating to the transaction (purchase, merchant, amount of the transaction, date, time, etc.) similar to any other platform. trade."
He added that Facebook is already collecting information about interactions in its market to better adapt its products and advertising. Marcus said the company does not sell to unaffiliated third parties. However, the question remains: does this include 'affiliates' such as these huge credits and the fintech giants who are investing heavily to be part of the Calibra consortium?
Smoke and mirrors may be enough for those unfamiliar with digital currency technology, but Facebook has already emerged as one of the world's largest personal data collectors. Why should he stop this business model now, while thin finances are involved.
Would you trust Facebook with your digital finances? Add your comments below.
Pictures via Shutterstock
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