Facebook has been highly secretive about its recent endeavor with cryptocurrency and blockchain. A more transparent approach could raise speculations in the market. Moreover, the regulations around cryptocurrency and payments have been unclear as well. Recently, the U.S. Senate Banking Committee sent an open letter to Founder Mark Zuckerberg, demanding the details about its cryptocurrency project: Libra.
Furthermore, according to the press release by Reuters, the chief executives of Facebook’s subsidiaries WhatsApp, Instagram and Messengers have been under regulatory scrutiny over privacy issues.
Reportedly, Facebook has registered the of ‘Libra Networks’ in Geneva, Switzerland. Facebook is the stakeholder of the company which aims to provide financial and technology services and develop related hardware and software, according to Reuters findings. The registration was made on 2nd May 2019 in Geneva. According to the fillings,
“investing, payments, financing, identity management, analytics, big data, blockchain and other technologies.”
Facebook has acquired trademark rights to Libra reportedly and is recruiting dozens of financial firms and online merchants.
Facebook has also been on a hiring spree for its new blockchain team that has more than 40 members from the FinTech industry. It also took a lenient stance on the advertising of cryptocurrency and blockchain projects on its giant social media platform.
Do you think that the move from the US to Europe was due to regulatory pressures? Please share your views with us.
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Author: Nivesh Rustgi