Facebook COE Mark Zuckerberg has tried to reassure sceptical US lawmakers over the safety of the social network’s proposed digital currency Libra. At a fractious hearing in Washington, members of Congress attacked plans for the payment system, warning it could be abused by criminals and terrorists.

Mr Zuckerberg was also challenged over claims that he had lied to US regulators in the past. But he promised Libra would not be launched without government approval. He said Facebook would leave the Libra Association if the consortium behind it tried to launch a cryptocurrency without permission.

Mr Zuckerberg’s appearance before the House Committee on Financial Services comes after a tough month for the Libra project. Eight of the 28 founding members of the Libra Association – set up to independently govern the currency – have pulled out. They included Mastercard, Visa, eBay and PayPal. Meanwhile, regulators around the world continue to express concern about the project. The G7 group of nations has vowed to block it unless Facebook can prove it is safe and secure.

There are concerns the currency could be used for money laundering, disrupt the global financial system, or give Facebook too much control over user data. Mr Zuckerberg told the hearing he understood the reservations about Libra but was determined to persevere.(BBC)…[+]