This past June, Facebook finally revealed the details of its cryptocurrency project, Libra. It will be up and running in the Libra network in the first half of next year, and yet, the industry cannot stop talking about it. The social network has created an unmatched amount of comments about the Libra stablecoin, both positive and negative.
For the latter, the primary issue seems to be, at least according to central banks and governments, regulating its use and making sure it shows compliance with the current legal framework in several locations around the world. That appears to be Libra’s most important barrier to overcome in its path towards success.
“It is Going to Be Open to Massive Fraud”
The latest comments are coming from the United Kingdom, where Damian Collins, who is currently the Chairman of the British Parliament’s Digital, Culture, Media and Sport Committee; states that the Libra ecosystem is bound to be to be open to massive fraud. He says that the British Parliament wants to probe it.
Collins has not been shy in the past about his criticism of Facebook, arguably the biggest and most prominent social network in the globe. The senior official at the British Parliament said in the past few hours that he wants to probe Facebook’s latest crypto venture.
Darren Collins is also known for conducting an investigation on Facebook after the well-publicized Cambridge Analytical data controversy, one that lasted roughly a year and a half. In an interview with specialized site Financial News, Collins once again showed criticism towards the social media outlet.
Too Much Power in Facebook’s Hands
According to Collins, Facebook will have too much power thanks to the rise and appearance of Libra, amid concerns about the company’s ability to responsibly process financial data of a very wide user community, one that can reach billions of people. He identifies the long list of privacy scandals that Facebook has undergone for the last few years as examples of his remarks.
Per Collins, Libra “is going to be open to massive fraud,” because it will be created, developed, and controlled by the company itself, and will not be able to be accessed by any person outside of what he calls “Facebook walled garden.” Mark Zuckerberg, one of Facebook’s leaders, has defended the project in the past few weeks by saying that since there are other investors and entities involved, Facebook will only have one vote in deciding things.
According to Collins’ remarks, he seems to think that Libra will let Facebook turn itself into its own nation, with no physical boundaries. He fears that only Mark Zuckerberg will supervise and administrate the “country” he refers to.
A Risky Proposition
Regulators in the Great Britain remain scared of the potential privacy risks with everything Facebook-related. Back in February, the British MP proposed that Facebook needed to have a different treatment when it comes to regulations, in an attempt to make sure the citizens’ rights were protected from the network, as it “intentionally breached data privacy and competition law.”
Back then, Collins said that “the age of inadequate self-regulation must end,” and that Facebook had “intentionally and knowingly violated both data privacy and anti-competition laws.” According to the MP, the company provided incomplete and misleading answers to enquiries by the nation’s authorities.
By Andres Chavez