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Technology EU grills Facebook over Libra's financial and privacy risks

02:05  07 october  2019
02:05  07 october  2019 Source:   engadget.com

Swiss watchdog expects details on Facebook's Libra by end of month

Swiss watchdog expects details on Facebook's Libra by end of month Swiss watchdog expects details on Facebook's Libra by end of month

It' s not just central banks interrogating Facebook over its Libra cryptocurrency as of late. The Financial Times has learned that the European Commission has asked Facebook to answer a range of questions about Libra , including the risks to financial stability and data privacy as well as the

'Breathtaking arrogance': senators grill Facebook in combative hearing over Libra currency. Congress questions Libra ’ s headquarters location. Lawmakers zeroed in on privacy and other As Facebook attempts to launch Libra , the House financial services committee is considering legislation

It's not just central banks interrogating Facebook over its Libra cryptocurrency as of late. The Financial Times has learned that the European Commission has asked Facebook to answer a range of questions about Libra, including the risks to financial stability and data privacy as well as the company's ability to comply with counter-terrorist financing and money laundering rules. Officials also want to know how Libra would handle its reserves.

a close up of a sign

The questioning is part of a larger EU effort to determine if and how Libra should be regulated, provided it's even allowed to operate in the region. There are significant hurdles to that happening. The European Central Bank's Benoît Coeuré has warned that the standards for approval "will be very high," and the French government has argued that Libra shouldn't be allowed in the EU.

Swiss say Facebook's digital currency plan will face hurdles

Swiss say Facebook's digital currency plan will face hurdles GENEVA (AP) — Facebook and its partners have asked financial authorities in Switzerland to evaluate their plan to create a new digital currency to be called Libra. Facebook unveiled a proposal in June to create a digital currency similar to Bitcoin for global use. The company said it would set up a nonprofit association headquartered in Geneva with its partners to oversee Libra, putting it under Swiss regulatory authority. The Swiss Financial Market Supervisory Authority said Wednesday, Sept. 11, 2019 the Libra Association has requested an “assessment” of its plan.

Facebook allocated a small fraction of its vast workforce to work on the project, Kevin Weil, who runs product for the Libra initiative, told Some lawmakers specializing in financial services policy have been frustrated by the lack of clarity from Facebook before and since June 18, three congressional

FILE PHOTO: Libra logo in illustration picture. WASHINGTON/NEW YORK (Reuters) - U. S . lawmakers from both sides of the aisle are set to grill Facebook Inc on its cryptocurrency plans on Tuesday, as the project continues to draw intense scrutiny from financial regulators and politicians

This doesn't mean Libra will be rejected. Some European politicians argue the virtual money could be useful for cross-border payments. However, regulators have been hoping for a truly EU-wide agreement, since clearance in one EU country could effectively make the currency viable across Europe.

The timing isn't certainly great for Facebook when Libra just lost backing from PayPal. While Facebook isn't expected to run into more trouble with its partners (they're expected to sign a membership declaration by October 7th), the combination of the departure with EU questioning is bound to raise doubts about the viability of the digital monetary format.

Financial Times

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