Zuckerberg will pull Facebook out of Libra if launched without US approval

Mark Zuckerberg will pull Facebook out of the controversial Libra digital currency project if other founding members decide to press ahead without US approval.

The social network has previously stated that the go-ahead from regulators across the Atlantic is one of the key provisions to launching the cryptocurrency.

However, the US Financial Services Committee appeared largely sceptical of most assurances, expressing fears that the system could be open to abuse by criminals and terrorists .

In his first testimony before Congress since April 2018, Mr Zuckerberg reiterated that Facebook would not be prepared to launch Libra without permission from US regulators.

"The independent Libra Association is a separate thing that exists at this point and if I feel like if Facebook can't be a part of it in keeping with the principles that I've laid out, then Facebook won't be a part of it," he said.

"We might be required to pull out if the association independently decides to move forward on something that we're not comfortable with.

"But my understanding right now is everyone is aligned on making sure that we have US regulatory approval to launch anywhere in the world and that's the goal."

The Facebook founder admitted the "risky" nature of the project and intense scrutiny was to blame for early big-name backers including Visa and Mastercard leaving the Libra Association.

The 35-year-old was also questioned about diversity, fears about child sexual exploitation over plans to roll out end-to-end encryption across all of the tech giant's platforms, political advertising and deepfakes.

Facebook has come under fire for its lax approach to fake news reports and disinformation campaigns, which many believe affected the outcome of the 2016 US presidential election.

Critics say the social network failed to prevent Russian interference in the election or take enough action to prevent similar happening in next year's campaign.

Maxine Waters, the Democratic chairwoman of the panel, pointed out that Facebook was the subject of an antitrust investigation.

She said it would be "beneficial for all if Facebook concentrates on addressing its many existing deficiencies and failures before proceeding any further on the Libra project".