- FDPIC say’s they haven’t been contacted yet
- David Marcus had told the U.S Senate PDPIC will regulate Libra
- Lawmakers have strong concerns about the Facebook project
Social media giant Facebook has failed to reach out to a Swiss regulator that is meant to oversee data and privacy protection for its Libra cryptocurrency. Facebook’s head of the Libra project told the U.S. senate last Tuesday they have a Swiss regulator for their crypto project – much to the surprise of that agency.
Swiss Federal Data Protection and Information Commissioner (FDPIC)’s spokesman and head of communication Hugo Wyler reportedly told CNBC news outlet that Libra was yet to make a formal contact with their agency. David Marcus, Facebook’s head of the Libra project had authoritatively mentioned FDPIC during his testimony to the U.S Senate on Tuesday July 16, 2019.
Facebook appears to have lied to the US senate
Speaking to CNBC, Wyler noted that he had heard of David Marcus’ statements on FDPIC’s potential role as the data supervisor in regards to Libra but they were yet to be contacted. Wyler stated:
“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.”
Marcus gave his testimony on Facebook’s Libra cryptocurrency to the U.S Senate on Tuesday. The social media giant plans to launch its cryptocurrency in 2020, initially targeting the money transfer market, which will be liberated globally. The testimony was in response to concerns raised by lawmakers.
The U.S. lawmakers called on Facebook to shed light on its plans to offer banking-related services. It also comes just days after President Trump showed that Facebook may have to be regulated like a bank in order to offer these services. The president’s suggestion differs somewhat from the Securities and Exchange Commission’s take, which is that Libra may be an exchange-traded fund.
Serious concerns among lawmakers
The Libra Association is headquartered in Switzerland, and Marcus told Congress he expects the currency to be regulated by Switzerland’s financial regulator. The association is currently in “preliminary discussions” with the Swiss regulator. It will also be under the jurisdiction of Switzerland’s national privacy regulator.
There is already a lot of skepticism surrounding the Facebook project from lawmakers with the U.S.
Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell both saying they have “serious concerns” about Libra related to money laundering, financial stability and regulation.
However, Marcus assured Rep. Bill Huizenga that Facebook had been in touch with the Financial Market Supervisory Authority, a Swiss financial regulator. Marcus further underlined that Facebook would not launch the Libra cryptocurrency project before they received the go-ahead from all relevant regulatory authorities.