Tuesday, July 5, 2022

EU interrogates Facebook about Libra


Zain Zubair
Zain Zubair is a staff writer for World News Observer. He is studying ACCA in Pakistan. Besides Accountancy and writing pieces, he loves cooking and nature photography. Zain has attended various modern journalism workshops. Contact: [email protected]

Several official bodies have asked Facebook to clarify how its currency, Libra, and how it will be used to prevent it from being used for illegal or terrorist acts, as was the case with the European Commission and the European Union.

The latest report by the Financial Times revealed that the European Commission has posed many questions regarding financial stability, money laundering and data privacy risks to Facebook and Libra association, the body in charge of cryptocurrency, as the questioning focused mainly on the security aspect and the privacy of user data to be used by the digital currency system. In addition, the company was questioned about its security measures to prevent Libra from being used to finance terrorism and illegal acts and how it would be able to secure its cash reserves.

The European Commission’s questioning of Facebook came in the context of its efforts to determine the regulations and rules for currency management, if allowed to circulate in the region, which is still unlikely because of the obstacles faced by the currency from regulators.

Previously, the ECB director said that the criteria and regulations for currency approval would be very difficult, while the French government expressed most of its refusal to Libra and not to allow its presence in the Union, which comes at a time of increasing official pressure on Facebook In order to explain to regulators how they plan to create a digital currency that can be used by 2.4 billion users on their platforms.

Libra supporters are expected to sign the membership declaration to signify their commitment to the project, pledging to invest at least $10 million in the project, but have yet to hand over any funds. Libra supporters are expected to nominate a board to formalize their participation. At the first official meeting in Geneva, where the Libra Society is based, in mid-October.

Read also: Lawyers warn: Facebook’s Libra will cause serious tax problems in Europe

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