Facebook‘s plan to launch to launch its own currency has once again raised significant privacy concerns, with some critics claiming it could be the most “invasive and dangerous” form of surveillance the technology giant has yet conceived.

The unveiling of the Libra cryptocurrency comes just over a year after the Cambridge Analytica scandal, which saw the private data of millions of Facebook users manipulated for the purpose of political profiling. Since then, the social network has been plagued by a series of privacy scandals that have continuously called into question the way Facebook handles its users data.

Libra is positioning itself as a new global currency that could take on mainstream currencies like the US dollar, as well as traditional financial institutions. But Facebook’s decision to branch out into this area could potentially open its users up to risks far beyond the privacy scandals of the past.

“If you’re concerned with Facebook knowing too much or having too much access to your private data, Libra will give Facebook even more direct access to your financial information,” said Phil Chen, a cryptocurrency expert who pioneered HTC’s first blockchain smartphone.

“It’s not just access to the information of your transactions, it’s direct access to your wealth and capital. If the top-line question about Facebook and antitrust is about whether to break it up and spin off the likes of WhatsApp and Instagram – well Libra is the most invasive and dangerous form of surveillance they have designed thus far. This will easily become the most dangerous antitrust case in history.”

Facebook birthday: 15 defining moments for the social network Show all 15 1 /15 Facebook birthday: 15 defining moments for the social network Facebook birthday: 15 defining moments for the social network Facebook is born On 4 Feb, 2004, 19-year-old Harvard student Mark Zuckerberg launched a website called 'TheFacebook' from his dorm. Within 24 hours the college social network had more than 1,000 users Wikimedia Commons Facebook birthday: 15 defining moments for the social network Winklevoss twins sue Zuckerberg Within one week of launching, fellow Harvard students Cameron Winklevoss, Tyler Winklevoss and Divya Narendra accused Zuckerberg of stealing their idea. It would be four years later when the resulting lawsuit was finally settled Facebook birthday: 15 defining moments for the social network Open for business The social network finally opened it platform to everyone on 26 September, 2006. The move proved the catalyst in supercharging the site's already explosive growth PA Facebook birthday: 15 defining moments for the social network Billion-dollar bid Yahoo offered $1 billion to buy Facebook in September 2006 but Zuckerberg turned it down. 'I don’t know what I could do with the money,' Zuckerberg reportedly said. 'I’d just start another social networking site' Reuters Facebook birthday: 15 defining moments for the social network In the money In September 2009, almost five years since the site launched, Facebook turned a profit for the first time Getty Images/iStockphoto Facebook birthday: 15 defining moments for the social network Taking the lead Facebook overtook MySpace in 2010 to become the world’s most popular social network Facebook birthday: 15 defining moments for the social network Taking on the tech giants In 2011, Google launched its own social network that it hoped would knock Facebook from its perch. Despite its initial success, Google+ ultimately failed and will be shut down completely in 2019 Getty Facebook birthday: 15 defining moments for the social network Facebook goes public On 18 May, 2012, Facebook went public. The initial public offering raised $16 billion – the third largest in US history Facebook birthday: 15 defining moments for the social network Gobbling up the competition Facebook acquired Instagram in April 2012 for $1 billion, consolidating its position as the world's leading social network Reuters Facebook birthday: 15 defining moments for the social network One billion users On 4 October, 2012, Zuckerberg announced that Facebook had hit 1 billion users. 'If you’re reading this: thank you for giving me and my little team the honour of serving you,' he wrote in a blog post Getty Images Facebook birthday: 15 defining moments for the social network Expanding its empire In February 2014 Facebook acquired the messaging app WhatsApp for $19.3 billion REUTERS/Dado Ruvic Facebook birthday: 15 defining moments for the social network Two billion users In June 2017, Facebook passed the 2 billion user milestone REUTERS/Dado Ruvic Facebook birthday: 15 defining moments for the social network Privacy scandal On 17 March 2018, news broke that UK firm Cambridge Analytica had harvested data from around 87 million Facebook users for the purpose of political profiling in the build up to the 2016 US presidential elections Shutterstock Facebook birthday: 15 defining moments for the social network Record profits Despite the scandals and subsequent #DeleteFacebook campaign, Facebook posted record profits just before its 15th anniversary, the equivalent of $7.37 from each of its 2.32 billions users iStock/Independent Facebook birthday: 15 defining moments for the social network Unhappy users A study found that people are happier when they don’t use Facebook, adding to mounting evidence surrounding the impact social media has on mental health Rex Features

Alongside Facebook are 27 other major companies involved in the Libra project. It spans financial firms like PayPal, Mastercard and Visa, to tech companies like Uber and Spotify.

Advocates say it will help the 1.7 billion people around the world who don’t have access to basic financial services, but for George McDonaugh, co-founder of blockchain investment firm KR1, the new currency is all about collecting more valuable information from people.

“Let’s cut to the chase, Facebook – and Libra’s supporting corporations – are doing this for one reason and that’s data. It will be spun as banking the unbanked, revolutionising payments and connecting the world, but don’t be fooled. This move into the murky world of cryptocurrency is about tapping new wells of data, the modern day oil,” he said.

“No doubt there’ll be plenty of assertions over privacy protection and ‘decentralised’ hand waving, but this is all about Facebook enriching their reservoirs of data, knowing who you are, what you’re buying, who you’re paying and how much you have.”

Facebook did not immediately respond to a request for comment about how its users’ data will be collected and used, though the Libra Association claims it will be built on a “secure, scalable, and reliable blockchain”.

Libra describes itself as a ‘simple global currency and financial infrastructure that can empower billions of people’ (Libra/ iStock/ The Independent)

The handling of financial data will inevitably come with increased scrutiny, meaning Libra could force Facebook to tighten up its data security across all its apps and service.

At least this is the hope of Aurelie L’Hostis, a senior analyst at market research firm Forrester.

“The Cambridge Analytica scandal has exposed the social network’s lapses of data privacy and security and the news of Libra comes at a time when Facebook is under intense pressure from regulators, shareholders and users to address privacy shortcomings,” she said.