One of the world’s biggest crypto exchange Binance, today unveiled its plans to launch a platform for the development of stablecoins and other crypto assets, backed by fiat currencies. Dubbed as ‘Venus’, Binance formally joined the stablecoin revolution as the platform is being tipped to rival other stablecoin projects like Facebook’s Libra and JP Morgan’s JPM coin.
Binance, having its presence in more number of countries than any other crypto exchange, has used the term ‘localized stablecoins’ in the its press release meaning, that the company will utilize its public blockchain, ‘Binance Chain’, launched in April 2018, for the issuance and transaction of stablecoins. The press release stated;
Binance will provide full-process technical support, compliance risk control system and multi-dimensional cooperation network to build Venus, leveraging its existing infrastructure and regulatory establishments.
Binance’s community driven approach has already been widely acknowledged by the crypto community. In its press release, the exchange called out everyone to help and build Venus.
Binance Chain has been used as a medium for secured cross-border payments by Binance. Blockpublisher reported earlier when the crypto exchange announced its stablecoin BTCB. The public blockchain has been working efficiently and successfully as it has already issued stablecoins (BTCB), backed by bitcoin and the Binance BGBP Stable Coin (BGBP), backed by the British Pound.
In its press release, Binance also discussed to forming partnerships and create alliances with different governments, tech giants and even other cryptocurrency projects to build and empower blockchain/crypto ecosystem.
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Need For a Stablecoin Project – The Venus Project
As the work is currently going on for different blockchains to interact with one another, and crypto exchange hacks are getting more frequent, there rose a need for decentralized crypto exchange or commonly known as DEX. Decentralized exchanges are impossible for any malware or hacker to get into since the user information is not stored at one place but multiple and that too in encrypted bits.
The crypto exchange recently experienced data leak where it is estimated the user names and passwords of around 60,000 binance users were compromised. A Telegram group distributed several images of people holding their IDs and pieces of paper written with “Binance, 02/24/19”, which sort of implied that the data presented has allegedly been hacked from the exchange.
Binance launched its public blockchain, ‘Binance Chain’ for Binance DEX and since blockchains work in silos, it is impossible for bitcoin blockchain to interact with any other blockchain like Ethereum (ETH) or Binance Chain. Bitcoin backed token, BTCB was issued over Binance chain so that transaction of bitcoin can be made possible.
Recently, Binance announced that it is planning to launch its services in the United States, a news that was much welcomed in the crypto verse. The company had been serving U.S. customers through its platform but didn’t have a presence in the U.S. market.
In an interview, Changpeng Zhao, Binance’s founder and CEO stressed the need for regulatory framework in the U.S. and how much uncertain the conditions are;
The U.S. historically has made very clear regulations, so we hope that will clear up,” he said. “At the same time, some early adopters in this space will be better rewarded. There are uncertainties in the regulatory space, but we’re willing to try.
The move to announce Venus for the development of stablecoins has been very timely as stablecoins are growing at an exceptional rate as they are tipped to shape the world’s financial system. The changes cryptos can bring to the world have a much wider range and require immediate regulatory framework.