A new company named Libra Networks was secretly registered by Facebook in Geneva on May 2 according to a Reuters report. The news coincides with Facebook’s plan to jump into the crypto sector with its own internal cryptocurrency.

As per the report, Facebook Global Holdings is a stockholder in Libra Networks. Technological and financial services to the new company will be provided by its parent company. Moreover, Libra Networks will also get help in the development of hardware and software, revealed plans submitted to the Swiss register.

Facebook is slowly marching towards its cryptocurrency goals. Recently, two Coinbase compliance managers were hired by the company. 

On the other hand, Congress has raised concerns over the proposed Libra project. In an open letter to the social media behemoth, US lawmakers have demanded clarification on the purpose and implications of the project.  

The lawmakers stated that according to the Wall Street Journal, Facebook is engaging financial firms and online merchants to seek help in the launch of its crypto-based payment system using its social network. Previously, US banks were asked to share detailed financial information about consumers by Facebook. On the other hand, privacy experts have raised questions regarding Facebook’s extensive data collection. Therefore, the company must clarify its purpose to collect such data. It may also be subjected to the Fair Credit Reporting Act, noted the lawmakers.

However, Facebook has not commented on the new company yet. As per rumours, around USD 1 billion is reserved for the proposed crypto project.

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