UK Lawmakers to Scrutinise Libra Over Fraud And Privacy
By Luke Flowers – Crypto Broker
A UK parliamentary committee could move to monitor Facebook’s crypto project Libra over fears of privacy and fraud. Plans have been released that would allow users to sell and buy crypto native to this chain for international transfer at low cost, but many governments are concerned over privacy due to Facebook’s social advertising business model.
Damian Collins, the chair of the Digital, Culture, Media, and Sport (DCMS) Committee, told Financial News that because of the social media giant’s previous history involving privacy, he has become worried that Facebook could hold on to billions of potential Libra financial details. This is counteracted by Facebook that claims if users buy crypto on this chain their transactions will be anonymous.
This is coming from the experience of a person who previously led a British investigation into the Cambridge Analytica data scandal. Collins claims that with Libra, Facebook might be “almost trying to turn itself into its own country.” Though not a nation that has any borders, he believes they have created a global community under the oversight of one man. It also goes against most cryptocurrencies and their decentralised networks to buy and sell cryptocurrency.
Facebook’s David Marcus, before addressing similar issues at senate hearings said, “You won’t have to trust Facebook to get the benefit of Libra.” This is similar to buying Bitcoin as you trust the network and its protocol, not the individual sending the coins.
“Facebook won’t have any special responsibility over the Libra Network. But we hope that people will respond favorably to Calibra wallet.”
It does pose the question if you were to buy and sell cryptocurrency on the network and something did go wrong, is any entity liable?
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