Facebook Registers ‘Libra’ Crypto Firm In Switzerland

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There is no doubt that Facebook has been vocal about its intention to enter the crypto space. But as far as releasing details about its so-called “Libra” digital currency project, it tries to keep everything under wraps. In a recent report, the social media giant has just registered a new company called Libra Network.

The Libra Network

The aforementioned company was reportedly registered in Geneva, although the registration date is said to be on May 2. Based on the name of the firm itself, it is safe to say that this is consistent with the tech company’s gradual roll-out of its internal crypto.

Facebook’s digital currency is said to define the social media giant’s first foray into the blockchain space. Facebook Global Holdings is deemed to be the stockholder in the newly registered company. The former will also be responsible for providing both financial and technological services. Even more so, it is expected to come up with related software and hardware, according to plans submitted on the Swiss registration.

It is worth noting that Facebook is trying to enter the crypto space in a slow and steady manner. In fact, its latest move in the space saw the involvement of two compliance managers from Coinbase. The hiring, in particular, took place on May 14.

The Libra project has indeed caught the attention of money, most especially the radar of the Congress. The US lawmakers decided to spend an open letter to the social media company in an attempt to seek clarification as to how exactly the crypto will play. They wanted to understand what its implications and purpose are.

A Deluge of Concerns

Facebook recruited a number of financial firms and sought the help of online merchants. The goal is to help the company in its launching of a crypto-based payments system, which would utilize its own social network.

Sometime last year, the tech firm asked U.S. banks to reveal financial information relating to their consumers. Add to this the fact that privacy experts have been doubtful in terms of the company’s ability to protect data privacy. In fact, they raised questions relating to the firm’s data collection practices.

As expected, the social media giant did not offer any detail relating to the registration of the new company in Switzerland. There are rumors, however, suggesting that the company is trying to raise at least $1 billion which would help it in building the technology.