Social media giant Facebook breaks into blockchain with newly registered Swiss company Libra Networks, according to a report from Reuters on May 17.
Per the report, Facebook Global Holdings is a stakeholder of Libra Networks, which is a subsidiary firm that coincides with Facebook’s rollout of their secretive cryptocurrency. According to Reuters, the firm will focus on blockchain and fintech payments data as well as investing services.
Moreover, the report reveals that plans have been submitted on the Swiss register for Libra Networks to provide Facebook with financial and technology services and develop related hardware and software.
US Lawmakers Demand Answers From Facebook on Its Crypto Venture
With the establishment of Libra Networks, US lawmakers sent an open letter to Facebook requesting answers to a series of questions regarding the company’s purpose and implications of its cryptocurrency venture.
The letter included 7 questions demanding answers, most of which were in regards to privacy and consumer protection. They asked what Facebook’s approach to privacy around its crypto and what information they have on consumers.
The lawmakers also asked how the crypto-based payments system would work, and whether or not the firm has reached out to regulators to ensure it’s compliant. They also asked if Facebook plans to sell tokens, and whether there are any other third parties involved.
Facebook has been very secretive with their crypto project and has thus far kept everything private. However, it appears more and more information is coming to light. and we may have the full scoop soon.
Do you think Facebook is planning something more than just a stablecoin cryptocurrency? Let us know what you think in the comment section below.
