Facebook has established a new fintech company in Switzerland that focuses on blockchain and payments. In addition, the company focuses on data analysis and investment, according to the Geneva Trade Register. And is there a relationship with the Facebook Coin?
Libra Networks
Libra Networks, with Facebook Global Holdings as shareholder, was registered in Geneva on 2 May. She will provide financial and technological services and develop related hardware and software. This is evident from the plans submitted to the Swiss Trade Register.
Facebook, the social network that has more than 2 billion users, did not want to comment directly on the creation of Libra Networks.
The social media WhatsApp, Messenger and Instagram, have one billion users. Facebook has no reputation when it comes to privacy. One must answer for the misuse of personal data.
Criticism
The U.S. Senate Banking Committee therefore also sent an open letter this month to Facebook's CEO Mark Zuckerberg, asking how secure a new payment system is. The Wall Street Journal stated in a report that Facebook is planning to set up a new cryptographic payment system.
The U.S. Senate Banking Committee wants to know from Zuckerberg how Facebook handles legal, regulatory, privacy issues within its new payment system.
Why is the existing central party going to be the designated party to market such a system based on bitcoin's blockchain technology?
Also in view of the fact that customer data has been handled with care. Bitcoin (BTC) and other crypto projects are in the meantime undergoing considerable development, with both a constant evolution in technical development and adoption, as well as an increase in prices and prices.
Market is in better shape
Barry Silbert, founder and CEO of the Digital Currency Group, explains why the sharp rise in bitcoin in recent times is a different story than the big hype of late 2017 / early 2018.
The market is, according to him, anyway better, given that the entire cryptomarket experienced a decline of more than 80 percent.
According to Silbert, the big difference is that the infrastructure is now much better. Where a year and a half ago there was little talk of custodians or compliance software, there is now.
At the time, there was a lot of speculation, looking at, for example, the number of ICOs that occurred. According to Silbert, it is also a matter of time before the first Bitcoin ETF is approved.