UK data watchdog raises privacy concerns over Facebook digital currency Libra
Elizabeth Denham asks the company to pay attention to privacy as well as financial regulations with its new venture.
Tuesday 6 August 2019 18:59, UK
The UK's data watchdog has joined an international group of privacy authorities to express concerns about Facebook's new digital currency, Libra.
Facebook plans to launch its digital currency within the next year, saying it will deliver an "inclusive and open" financial ecosystem.
However, the plans appear to have been stalled amid regulatory concern.
It includes a joint letter from bodies such as the Information Commissioner's Office in the UK - which wants to know "how customers' personal data will be processed in line with data protection laws".
The social networking company's venture into finance could use its reach to become a major money spinner.
AnalysisThe new cryptocurrency is part of a wider Calibra digital wallet package under development that will be available as a standalone app before mid-2020.
It will initially only allow payments between users, via smartphones or other devices, but Libra will be "open source" - meaning it can be included in existing and other digital wallets.
But UK Information Commissioner Elizabeth Denham has warned that the "ambitious" project "must work in tandem with people's privacy expectations and rights".
Following high-profile privacy scandals at Facebook, including the inappropriate sharing of information from 87 million users with Cambridge Analytica, Ms Denham said the company's involvement was worth paying particular attention to.
She said: "Facebook's involvement is particularly significant, as there is the potential to combine Facebook's vast reserves of personal information with financial information and cryptocurrency, amplifying privacy concerns about the network's design and data sharing arrangements.
"We know that the Libra Network has already opened dialogue with many financial regulators on how it intends to comply with financial services product rules.
"However, given the rapid plans for Libra and Calibra, we are concerned that there is little detail available about the information handling practices that will be in place to secure and protect personal information.
Dante Disparte, the head of policy and communications for the Libra Association, told Sky News: "We appreciate these thoughtful questions and share the commitment to protecting personal information.
"As much as Libra represents an opportunity for the world to make inroads on financial inclusion, we acknowledge the need to design an infrastructure that complies with global privacy requirements."