Facebook News: Libra Cryptocurrency Scrutinized By US, EU Global Privacy Officials

Top data protection officials from the U.S., U.K. and other nations have released a joint statement expressing privacy concerns about Facebook's planned cryptocurrency Libra, which is set to be released in 2020.

"As representatives of the global community of data protection and privacy enforcement authorities, collectively responsible for promoting the privacy of many millions of people around the world, we are joining together to express our shared concerns about the privacy risks posed by the Libra digital currency and infrastructure," the statement said.

The statement urged Facebook to consider various questions before the Libra rollout such as: "How can global protection and privacy enforcement authorities be confident that the Libra network has robust measures to protect the personal information of network users?" or "How will Libra Network incorporate privacy by design principles in the development of its infrastructure?"

The statement was signed by Federal Trade Commissioner Rohit Chopra, European Data Protection Supervisor Giovanni Buttarelli, and other officials from the U.K., Canada, Australia, Burkina Faso and Albania.

Data protection isn't the only concern some authorities have about Libra. U.S. officials, such as Treasury Secretary Steve Mnuchin and Federal Reserve Chairman Jerome Powell, have claimed that the currency could be used for money laundering or terrorist financing.

Members of Congress have also lambasted the Libra project, with Sen. Sherrod Brown, D-Ohio, saying in July that "We'd be crazy to give them a chance to let them experiment with people's bank accounts."

"Instead of cleaning up your house, you are launching into a new business model," said Republican Sen. Martha McSally of Arizona.

Facebook had already faced data privacy scandals in the past, such as last year's revelation that the social network let data polling company Cambridge Analytica have access to the personal data of millions of users.

The Facebook Libra cryptocurrency was unveiled in June and aims to offer financial services that can be used just with cellphone. The simplicity of Libra and its virtual wallet, Calibra, has also been touted as a way to offer financial services to developing parts of the world, with 1.7 million adults worldwide lacking access to traditional bank accounts.