Australia has joined with a group of global regulators asking Facebook explain how it will protect people’s privacy in its Libra cryptocurrency project.
The social media giant, along with a consortium of companies such as MasterCard, Uber and Spotify, is to launch the digital currency Libra by the mid-2020.
While Facebook is leading the project, it plans to step back and allow The Libra Network to govern the currency when it’s launched, by which time it expects to have 100 members on board.
Today, the Office of the Australian Information Commissioner (OAIC) and the UK Information Commissioner’s Office, with the backing of data protection authorities from the US, European Union and Canada, expressed concern over the project, particularly due to Facebook’s involvement.
In a joint statement the group asks The Libra Network to expand on Facebook’s “broad public statements about privacy” and specifically address how it will protect personal information.
“This is an important step in a global regulatory movement that is holding online companies to account for how they handle personal information,” Angelene Falk, Australian Information Commissioner and Privacy Commissioner says.
“Given the many initiatives taking place in our finance and technology sector, privacy must be a key component of any significant digital initiative such as Libra.”
The OAIC is concerned that lawmakers around the world won’t be able to keep up with the adoption of Libra, which could be accelerated by Facebook’s involvement.
The group wants The Libra Network to address a list of concerns, including explaining exactly what data will be collected from users, and how it will be used and shared between members of The Libra Network.
Facebook says it is prepared to engage with the community to address on-going privacy concerns.
“Engaging with regulators, policymakers, and experts is critical to Libra’s success,” a Facebook spokesperson says.
“This was the whole reason that Facebook along with other members of the Libra Association shared our plans early. The time between now and launch is designed to be an open, collaborative process. We will take the time to get this right.”
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