Facebook has been in the spotlight for this week over Libra, it’s cryptocurrency subsidiary. However, the most recent reason is whether or not Switzerland’s Data Protection Agency was involved with the digital currency.
David Marcus, who heads Facebook’s Calibra was called to clarify issues surrounding the digital currency in front of the Senate Committee on Banking, Housing, and Urban Affairs. A lot of people have called for a halt to the project and the senate also expressed scepticism towards its launch.
However, Marcus answered questions thrown at him concerning Libra. When asked how Libra aimed to preserve users’ data, Marcus revealed that the duties of data, privacy protection and privacy regulation of Libra will be handled by the Swiss Federal Data Protection and Information Commissioner (FDPIC).
While Facebook’s data privacy was the focus of the meeting, some other policy makers such as U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powel expressed concern about money laundering. To which Marcis revealed that the FDPIC would handle data privacy issues, while the Swiss Financial Markets Supervisory Authority (FINMA) would be the main financial regulator of Libra.
However, in a funny plot twist, the Swiss have denied any involvement with Libra. A representative of the FDPIC has revealed that they have no connection with Facebook’s digital currency.
Hugo Wyler, the FDPIC head of communication states, “Until today, we have not been contacted by the promoters of Libra. We expect Facebook or its promoters to provide us with concrete information when the time comes. Only then will we be able to examine the extent to which our legal advisory and supervisory competence is given. In any case, we are following the development of the project in the public debate.”
After the meeting with the Senate, Calibra revealed that they were yet to meet with FDPIC. They, however, revealed that it was part of their plans along with the ongoing discussion with regulators and policymakers. However, FINMA have revealed that they are in contact with the initiators of the Facebook cryptocurrency project.