Connect with us

FACEBOOK

Facebook-backed Diem aims to launch digital currency pilot later this year

Published

on

Facebook wanted to revolutionize finance with a global digital currency — then came the regulators.

First proposed in June 2019 with the name libra, the token was initially intended to be a universal currency tied to a basket of sovereign currencies such as the U.S. dollar and the euro.

But after facing strong opposition from regulators around the world, the organization overseeing the project lost major backers including Visa and Mastercard. The group eventually watered down its plans, opting for multiple “stablecoins” backed one-to-one by different government-backed currencies, as well as one multi-currency coin.

Now known as diem, the Facebook-backed digital coin is expected to launch later this year, albeit in a much more limited form. When it finally arrives, diem won’t come with the same fanfare and controversy of the original idea envisioned by the social media giant nearly two years ago.

Stablecoin pilot

The Diem Association, the Switzerland-based nonprofit which oversees diem’s development, is aiming to launch a pilot with a single stablecoin pegged to the U.S. dollar in 2021, according to a person familiar with the matter.

Advertisement
free widgets for website

The person, who preferred to remain anonymous as the details haven’t yet been made public, said this pilot will be small in scale, focusing largely on transactions between individual consumers. There may also be an option for users to buy goods and purchases, the person added. However, there is no confirmed date for the launch and timing could therefore change.

“It’s really drifted off the radar in a way that’s quite striking,” Michael Casey, chief content officer of the cryptocurrency publication CoinDesk and a former financial journalist, told CNBC.

Diem was met with intense scrutiny when it was first introduced. Given Facebook’s wide reach — it had 2.8 billion monthly active users in the fourth quarter of 2020 — central bankers and politicians feared the currency could threaten monetary stability and potentially enable money laundering. Facebook’s involvement also meant that there were concerns over how it would protect users’ privacy.

See also  New Considerations for Creating Effective Stories Ads

“It was such a stunning challenge to the international order, in that the backlash was just really powerful,” Casey said.

One big concern, according to Casey, was that diem posed a threat to the dominance of the U.S. dollar. Two months after Facebook unveiled libra, former Bank of England Governor Mark Carney proposed a new digital currency based on a global basket of goods that could diminish the dollar’s status as the world’s reserve currency.

Advertisement
free widgets for website

Diem’s technology has “changed dramatically over the past year and a half from a naive blockchain to a very sophisticated blockchain that you can see is trying to answer some of the questions that regulators had,” said Ran Goldi, CEO of Digital Assets Group, which is building infrastructure to let merchants accept diem as a method of payment.

“I think it will get past the gates this year,” said Michael Gronager, CEO of blockchain analysis firm Chainalysis. “It would be a missed opportunity if not.”

“At the same time,” Gronager added, “it’s one of multiple initiatives happening and it’s similar to Tesla buying $1.5 billion in crypto. This is just part of a big movement, not a new movement.

Indeed, diem — or libra — may have been the big crypto story of 2019. But bitcoin and cryptocurrencies have gathered significant momentum over the past year, with bitcoin recently surging to a new all-time high above $60,000 and major firms like Tesla and Square making big bets on the digital coin. Meanwhile, crypto exchange Coinbase went public in a landmark direct listing on the Nasdaq.

What’s next for diem?

The Diem Association has lost numerous members and executives almost two years on from its initial unveiling.

Advertisement
free widgets for website

Visa, Mastercard and Stripe were some of the earliest companies to withdraw from the association. That was followed by an exodus of other members, including PayPal, eBay and Vodafone. Meanwhile, the project has also suffered a number of notable departures, from Kevin Weil, the head of Facebook’s planned digital wallet Novi, to Dante Disparte, Diem’s public affairs chief.

See also  Facebook takes aim at TikTok by letting users earn money off minute-long videos

At the same time, Diem has gone through a complete makeover, rebranding from Libra earlier this year and beefing up its leadership team with big hires like CEO Stuart Levey, who was formerly HSBC’s chief legal officer.

Diem is now in talks with Swiss financial regulators to secure a payment license, a crucial step that would place the organization further along the path toward getting its digital currency project off the ground.

“A big step of our dialogue with regulators has been a phased approach to launch,” Christian Catalini, Diem’s chief economist, told CNBC’s Joumanna Bercetche last month.

“We are going to be phasing in different functionalities and use cases, applications in different areas,” he said, adding that members — both large and small — would have to undergo rigorous anti-money laundering checks.

Advertisement
free widgets for website

“Once we get the green light, we will start experimenting with a small number of users and a small number of players,” Catalini said. The goal would be to ensure that the technology and reserve system operate as expected, he added.

And though it’s starting with a limited pilot, the group plans to eventually bring in merchants and other partners. It is staying tight-lipped on which ones, for now.

‘Network effect’

“What you get with an institution like Facebook backing a stablecoin is much better distribution,” Gronager said. “You can put it into apps, add it to a lot other places and I think that will be strong.”

“We’ll see when it launches how it’s going to play out but already today a lot of the interest in crypto is also speculative,” he added. “It will basically enable more people to easily get into crypto.”

See also  US government, states ask judge to deny Facebook's request to dismiss lawsuits

But this also brings with it concerns around users’ data, an issue that has clouded the project due to Facebook’s history of privacy scandals. For its part, Diem says it takes privacy “very seriously.”

Advertisement
free widgets for website

“Diem itself will not have private information about the customers,” said Catalini. “Some of our members have made commitments with regards to data separation between social and financial data.”

Nevertheless, one thing diem has achieved is a global race among central banks to figure out their own digital money strategy. The People’s Bank of China is leading the way, trialing a digital version of the yuan in a number of cities, while Britain’s central bank is exploring whether or not to issue its own digital currency. And some experts say we shouldn’t count out diem just yet.

“The story of digital money in the 2020s will be the growth of tokenized money,” a team of Citi analysts led by Ronit Ghose, global head of banks research, wrote in a research note last week.

“Central banks … and Big Tech … alongside wider adoption of cryptocurrency, are building new payment formats and rails,” Citi analysts wrote. “Stablecoins such as Diem could benefit from the huge network effects of their Big Tech sponsors.”

Read More

Advertisement
free widgets for website

FACEBOOK

Introducing an Update to the Data Protection Assessment

Published

on

By

introducing-an-update-to-the-data-protection-assessment

Over the coming year, some apps with access to certain types of user data on our platforms will be required to complete the annual Data Protection Assessment. We have made a number of improvements to this process since our launch last year, when we introduced our first iteration of the assessment.

The updated Data Protection Assessment will include a new developer experience that is enhanced through streamlined communications, direct support, and clear status updates. Today, we’re sharing what you can expect from these new updates and how you can best prepare for completing this important privacy requirement if your app is within scope.

If your app is in scope for the Data Protection Assessment, and you’re an app admin, you’ll receive an email and a message in your app’s Alert Inbox when it’s time to complete the annual assessment. You and your team of experts will then have 60 calendar days to complete the assessment. We’ve built a new platform that enhances the user experience of completing the Data Protection Assessment. These updates to the platform are based on learnings over the past year from our partnership with the developer community. When completing the assessment, you can expect:

  • Streamlined communication: All communications and required actions will be through the My Apps page. You’ll be notified of pending communications requiring your response via your Alerts Inbox, email, and notifications in the My Apps page.

    Note: Other programs may still communicate with you through the App Contact Email.

  • Available support: Ability to engage with Meta teams via the Support tool to seek clarification on the questions within the Data Protection Assessment prior to submission and help with any requests for more info, or to resolve violations.

    Note: To access this feature, you will need to add the app and app admins to your Business Manager. Please refer to those links for step-by-step guides.

  • Clear status updates: Easy to understand status and timeline indicators throughout the process in the App Dashboard, App Settings, and My Apps page.
  • Straightforward reviewer follow-ups: Streamlined experience for any follow-ups from our reviewers, all via developers.facebook.com.

We’ve included a brief video that provides a walkthrough of the experience you’ll have with the Data Protection Assessment:

Something Went Wrong

Advertisement
free widgets for website

We’re having trouble playing this video.

The Data Protection Assessment elevates the importance of data security and helps gain the trust of the billions of people who use our products and services around the world. That’s why we are committed to providing a seamless experience for our partners as you complete this important privacy requirement.

Here is what you can do now to prepare for the assessment:

  1. Make sure you are reachable: Update your developer or business account contact email and notification settings.
  2. Review the questions in the Data Protection Assessment and engage with your teams on how best to answer these questions. You may have to enlist the help of your legal and information security points of contact to answer some parts of the assessment.
  3. Review Meta Platform Terms and our Developer Policies.

We know that when people choose to share their data, we’re able to work with the developer community to safely deliver rich and relevant experiences that create value for people and businesses. It’s a privilege we share when people grant us access to their data, and it’s imperative that we protect that data in order to maintain and build upon their trust. This is why the Data Protection Assessment focuses on data use, data sharing and data security.

Data privacy is challenging and complex, and we’re dedicated to continuously improving the processes to safeguard user privacy on our platform. Thank you for partnering with us as we continue to build a safer, more sustainable platform.

First seen at developers.facebook.com

Advertisement
free widgets for website
See also  Foes united vs Facebook over Instagram's effect on teens - KTVZ
Continue Reading

FACEBOOK

Resources for Completing App Store Data Practice Questionnaires for Apps That Include the Facebook or Audience Network SDK

Published

on

By

resources-for-completing-app-store-data-practice-questionnaires-for-apps-that-include-the-facebook-or-audience-network-sdk

Resources for Completing App Store Data Practice Questionnaires for Apps That Include the Facebook or Audience Network SDK

First seen at developers.facebook.com

See also  Facebook takes aim at TikTok by letting users earn money off minute-long videos
Continue Reading

FACEBOOK

Resources for Completing App Store Data Practice Questionnaires for Apps That Include the Facebook or Audience Network SDK

Published

on

By

resources-for-completing-app-store-data-practice-questionnaires-for-apps-that-include-the-facebook-or-audience-network-sdk

Updated July 18: Developers and advertising partners may be required to share information on their app’s privacy practices in third party app stores, such as Google Play and the Apple App Store, including the functionality of SDKs provided by Meta. To help make it easier for you to complete these requirements, we have consolidated information that explains our data collection practices for the Facebook and Audience Network SDKs.

Facebook SDK

To provide functionality within the Facebook SDK, we may receive and process certain contact, location, identifier, and device information associated with Facebook users and their use of your application. The information we receive depends on what SDK features 3rd party applications use and we have structured the document below according to these features.

App Ads, Facebook Analytics, & App Events

Facebook App Events allow you to measure the performance of your app using Facebook Analytics, measure conversions associated with Facebook ads, and build audiences to acquire new users as well as re-engage existing users. There are a number of different ways your app can use app events to keep track of when people take specific actions such as installing your app or completing a purchase.

With Facebook SDK, there are app events that are automatically logged (app installs, app launches, and in-app purchases) and collected for Facebook Analytics unless you disable automatic event logging. Developers determine what events to send to Facebook from a list of standard events, or via a custom event.

When developers send Facebook custom events, these events could include data types outside of standard events. Developers control sending these events to Facebook either directly via application code or in Events Manager for codeless app events. Developers can review their code and Events Manager to determine which data types they are sending to Facebook. It’s the developer’s responsibility to ensure this is reflected in their application’s privacy policy.

Advertisement
free widgets for website

Advanced Matching

Developers may also send us additional user contact information in code, or via the Events Manager. Advanced matching functionality may use the following data, if sent:

  • email address, name, phone number, physical address (city, state or province, zip or postal code and country), gender, and date of birth.
See also  Trump say 'not too interested' in gettinng back on Facebook

Facebook Login

There are two scenarios for applications that use Facebook Login via the Facebook SDK: Authenticated Sign Up or Sign In, and User Data Access via Permissions. For authentication, a unique, app-specific identifier tied to a user’s Facebook Account enables the user to sign in to your app. For Data Access, a user must explicitly grant your app permission to access data.

Note: Since Facebook Login is part of the Facebook SDK, we may collect other information referenced here when you use Facebook Login, depending on your settings.

Device Information

We may also receive and process the following information if your app is integrated with the Facebook SDK:

  • Device identifiers;
  • Device attributes, such as device model and screen dimensions, CPU core, storage size, SDK version, OS and app versions, and app package name; and
  • Networking information, such as the name of the mobile operator or ISP, language, time zone, and IP address.

Audience Network SDK

We may receive and process the following information when you use the Audience Network SDK to integrate Audience Network ads in your app:

  • Device identifiers;
  • Device attributes, such as device model and screen dimensions, operating system, mediation platform and SDK versions; and
  • Ad performance information, such as impressions, clicks, placement, and viewability.

First seen at developers.facebook.com

Continue Reading

Trending