NEW YORK (AP) – Facebook’s introduction of a new digital currency is likely to draw regulatory scrutiny. But New York University law professor Eleanor Fox says initial details about the currency don’t signal any traditional antitrust problems.
Facebook is already under federal investigation over its privacy practices, and along with other technology giants also faces a new antitrust probe in Congress.
Creating its own globe-spanning currency – one that could conceivably threaten banks, national currencies and the privacy of users – isn’t likely to dampen regulators’ interest in Facebook.
Fox says critics will say this is too much power for Facebook and shouldn’t be allowed. But she considers Facebook’s foray “a grass-roots entry into a new field” and says it can increase innovation.
Facebook said Tuesday it plans to launch the currency over the next six to 12 months.