Sunday December 15, 2019
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Facebook Not to Launch Libra Until Regulators are Fully Satisfied

Facebook has reportedly reached a whopping $5 billion settlement with the US FTC in the Cambridge Analytica privacy violations

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FILE - Attendees walk past a Facebook logo during Facebook Inc's F8 developers conference in San Jose, California, United States. VOA

Facebook is not going to launch its digital coin Libra unless regulators are fully satisfied and all necessary approvals are in place.

Under Facebook subsidiary Calibra, the social networking giant has planned to introduce a digital wallet for Libra. The wallet will be available on Messenger, WhatsApp and as a standalone app and is expected to be launched in 2020.

According to David Marcus, Head of Calibra who is set to face Senate Banking Committee over Libra concerns on Tuesday, US and state regulators will be involved when it comes to regulating services that offer Libra, reports The Verge.

Facebook is treating Libra as a “payment tool, not an investment”.

States would montior Calibra as a money transmitter, with the US Federal Trade Commission overseeing consumer protections, said Marcus.

“The Libra Association won’t keep personal data beyond basic transaction info and Facebook won’t share Calibra wallet info with the rest of the company,” Engadget quoted Marcus as saying.

US Federal Reserve Chair Jerome Powell has raised “serious concern” over Libra.

Facebook, Libra, Bitcoin
Bitcoin, which has risen in value for eight consecutive days, received a boost after Facebook has said it would offer its own cryptocurrency, the Libra coin by end of June 2020. Pixabay

Testifying before the House Financial Services Committee last week, Powell raised serious objections on Facebook cryptocurrency slated to arrive in 2020.

“I just think it cannot go forward without there being broad satisfaction with the way the company has addressed money laundering and other issues,” Powell told the House Financial Services Committee.

“Libra raises many serious concerns regarding privacy, money laundering, consumer protection and financial stability,” Powell added.

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In a letter sent to Facebook executives, US lawmakers have officially asked the social networking giant to cease all development of its Libra cryptocurrency.

Facebook has reportedly reached a whopping $5 billion settlement with the US FTC in the Cambridge Analytica privacy violations.

The report of the $5 billion settlement, the largest ever by the FTC against a tech company over privacy issues after a $22.5 million settlement with Google in 2012. (IANS)

Next Story

Facebook Commits $130 mn to Build Global Oversight Board for Ensuring Accountability

Facebook intends to continue funding the board's operations in the future, and these reports will be used to assess the need for additional, substantive and long-term funding

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Facebook
Facebook said it has established the independent Oversight Board Trust to ensure the board can safeguard its ability to make independent decisions and recommendations. Pixabay

Facebook has made an initial commitment of $130 million to build a global oversight board that will ensure good governance and accountability across its services and platforms.

The initial funding will cover operational costs such as office space, staff and travel expenses and should allow the board to operate for at least its first two full terms, approximately six years, Brent Harris, Director of Governance and Global Affairs at Facebook, said in a statement.

The board will submit a yearly budget to the trust for approval and disbursement of funds.

Annual reports from the board and trust will help to document the health and effectiveness of the board, including its stewardship of these resources.

Facebook intends to continue funding the board’s operations in the future, and these reports will be used to assess the need for additional, substantive and long-term funding.

Last November, Mark Zuckerberg wrote about his vision for what content governance should look like for Facebook.

Facebook said it has established the independent Oversight Board Trust to ensure the board can safeguard its ability to make independent decisions and recommendations.

Facebook
Facebook has made an initial commitment of $130 million to build a global oversight board that will ensure good governance and accountability across its services and platforms. Pixabay

“The board will have its own staff, independent from Facebook. To start, we expect this staff to include a director, case managers and dedicated staff members (or contracted services) who can support things such as the board’s communications, legal, human resources and research needs,” said Harris.

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In addition, said Facebook, it will continue to work with outside experts to source and review candidates for board membership, including those who’ve been recommended through the public portal, which we opened in September.

“We are eager to see the Oversight Board take shape and start hearing cases next year,” said Facebook. (IANS)