Braden Perry Featured Among Experts on Facebook Libra Vs Privacy on Fintech Zoom Article
Perry, among other digital currency experts, was highlighted in a Fintech Zoom article discussing Facebook’s plan to operate its own digital currency. There are concerns about ensuring the privacy of their data, for Facebook does not have a positive track record securing users’ information.
Braden Perry – Cybersecurity Attorney, said:
The major takeaway is that this is an ambitious project that looks to upend traditional payment processors like Paypal and Venmo. This would be a stablecoin on the Libra Blockchain, which is a public ledger designed to accommodate extremely quick transactions. The goal is to eliminate transaction fees and create a universal payment system capable of quickly transacting payments around the world. These transactions would be pseudonymous, meaning they are available to view on a public ledger, but without PII, including names, etc. The way it’s designed to work would be to have a user purchase Libra, use it in transactions, then cash out whenever they want through either a wallet that is compatible with Libra or Facebook’s Calibra wallet, that will be built into the Facebook and related apps. Officially, Facebook won’t control Libra, but it will be a major player on the Libra blockchain. From a privacy perspective, it’s difficult not to be skeptical. According to the Facebook/Libra whitepaper, By default, Facebook won’t import contacts or any of profile information but will request you do so. It also states that it won’t share any transaction data back to Facebook, so it won’t be used to target you with ads, rank your News Feed, or otherwise earn Facebook money directly. The whitepaper states that data will only be shared in specific instances in anonymized ways for research or adoption measurement, for hunting down fraudsters or due to a request from law enforcement.
Congress has already called for testimony from execs in charge of the project. Citing Facebook’s recent privacy issues, House Committee Financial Chair Maxine Waters promised aggressive oversight into privacy and national security concerns, cybersecurity risks, and trading risks that are posed by cryptocurrencies.
In summary, Libra and other Blockchain technology have vast potential. Companies looking to innovate and are proactive in its uses will likely reap benefits in ways we can imagine and in likely unimagined areas. As the regulatory framework progresses with innovation, companies will benefit. But that regulatory framework will likely lag the innovation, and frustrate those willing to adopt new technology.
To read the article in full: https://fintechzoom.com/fintech-news/uncategorized/facebook-libra-vs-data-privacy
About Kennyhertz Perry’s Privacy, Cybersecurity, and Breach Management Practice Group
Kennyhertz Perry assists clients with data security needs, blending traditional legal experience in the corporate and litigation arenas with technical acumen.
We assist clients in prevention, developing robust information security programs, including administering internal compliance and risk assessments, which include the development and implementation of corporate policies and procedures required for compliance with state and federal privacy and security laws, and information security best practices; information security policies; records retention and management policies.
In addition to prevention, Kennyhertz Perry can prepare security incidence response procedures, identify, assess, contain, and mitigate privacy and security breaches, and work with law enforcement to assist in the investigation of the incident. Businesses that are the victims of cyberattacks also must determine when and how to cooperate with government agencies during an investigation of an attack, and how best to do so. The lawyers in our privacy and cybersecurity practice, as well as members of our Government Enforcement practice group have deep experience, from both government and private practice, in this area, and help companies navigate the often complicated interactions with government agencies, and can provide both counseling and representation where the threat of prosecution may arise.
Kennyhertz Perry also assists with IT resiliency understanding and engaging at the top management and board level. Traditionally, IT has been misunderstood, and management would not understand the role and responsibility of IT departments. Kennyhertz Perry bridges this gap at all level. At the Board level, directors not only need to be sophisticated with business issues, they also need to be versed in today’s cyber and IT. Translating an understanding of the importance of a proactive IT security policy, and feeling like the company is “on board” with IT security efforts. Many companies have very robust policies and procedures for their business processes, which sophisticated Board members can understand. IT is different. It’s a different language for a business person, and unfortunately most Board members will ignore or defer on issues they don’t understand. So when an IT department presents a robust plan for proactive IT security, it may go ignored or disregarded. This can lead to a reactive plan only that focuses on the “when” as opposed to prevention. IT is a different language. We serve as Board IT/cybersecurity liaison to be the “go between” and translate the IT language into business and vice versa.
Kennyhertz Perry, LLC is a business and litigation law firm representing clients in highly regulated industries. The firm was founded by two veteran Kansas City attorneys, John Kennyhertz and Braden Perry. To learn more about the firm, visit kennyhertzperry.com.
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