One of the top cryptocurrency exchanges in the world, Binance announced its plans for launching a project that will be developing cryptocurrencies and digital assets, pegged to several fiat currencies around the world.
The main aim behind Binance’s Venus is to empower developed and developing countries to spur new currencies. Which is uncannily similar to what Facebook has envisioned for its forthcoming stablecoin, Libra. And Binance isn’t shying away from this similarity.
In an announcement on August 19th, the world’s largest cryptocurrency platform by daily trading volume revealed that it would soon release an open blockchain project, dubbed Venus.
As per the exchange, for its latest endeavor, the company looking to create new alliances and partnerships with governments, corporations, tech companies as well as other cryptocurrency companies that are involved in the blockchain ecosystem.
According to the Chinese version of the platform’s announcement, Binance reportedly stated that Venus is meant to an “independent and autonomous, regional version of Libra.”
In the case of the social media giant, it seeks to conquer the global financial world with Libra. With prominent names of the financial and crypto industry such as PayPal, Visa, Coinbase, Uber and Mastercard on board Facebook’s crypto endeavor, their goal is to create a digital currency that allows people all across the globe to avoid the fees that is associated with credit cards and remittance services.
On the other hand, Binance says that the objective behind Venus is slightly different. The exchange platform is looking to enable developing countries to have more financial autonomy and to protect their financial security by providing them with a means to create new digital currencies. However, no partners have been announced for Venus as of yet.
But Binance’s experience in a world so heavy on crypto regulations clearly outweighs Facebook in this particular, given that Libra hasn’t been warmly welcomed by regulators and various governments, to s ay the least. It has already dealt with its fair share of criticism, even form the crypto community. Where as, Binance clearly has made a legitimate place in the crypto world, and has managed to gain the confidence of the community.
The Venus platform does have the potential to give Facebook’s Libra a run for its money, however that is not Binance’s intention. Apparently, this isn’t some sort of rivalry that pits the two giants against one another; in fact Binance’s CEO Changpeng Zhao (CZ) cleared it out that the exchange is not positioning Venus as a rival to Libra.
It seems that CZ believes that the crypto table is big enough for both the organizations to serve their stable coin projects to the community. He made it clear that Binance does not want to dominate the stablecoin market with Venus.
According to him, the goal with Venus is to boost crypto adoption, and he believes that the exchange’s upcoming project could actually do more good than harm for Libra.
Pushing adoption, yes. Domination, no. Always happy to co-exist.
In fact, this should help Libra, if you think about it. Will leave it at that. https://t.co/HLSywLb2mi
— CZ Binance (@cz_binance) August 19, 2019
And he might just be right. Because the more organizations take on projects like these, the more familiar governments will grow with this new concept, which could help in benefiting the crypto ecosystem altogether.
According to reports, Monica Eaton-Cardone, the owner and COO of the fintech cybersecurity company Chargebacks911 suggests that healthy, mutually beneficial competition between crypto companies will grow the size of the industry by increasing awareness and utility as well as normalizing its usage.
However, there is no denying the upper hand Binance has, especially since Binance Malta launched its decentralized trading service dubbed the Binance Chain earlier this year. And since then, the platform has been offering stable coins that are pegged to both fiat currency, the British Pound, and to a cryptocurrency, Bitcoin (BTC).
As big platforms jump on the stable coin bandwagon, they have the potential to disrupt the traditional financial system, as it seems to provide the ideal middle ground; stable coins offer the perks of the cryptoverse without the most glaring inconvenience that is price volatility.
According to reports, Binance co-founder Yi He addressed the new project, saying:
We believe that in the near and long term, stable coins will progressively replace traditional fiat currencies in countries around the world, and bring a new and balanced standard of the digital economy.