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New Facebook Libra competitor: Binance plans Venus Launch

New Facebook Libra competitor: Binance plans Venus Launch

Binance plans Venus launch, an open blockchain project described as “an initiative to develop localized stablecoins and digital assets pegged to fiat currencies across the globe”.

August 19, 2019 | AtoZ MarketsBinance, the world’s largest crypto exchange, is planning to launch “Venus,” calling it an “independent regional version of Libra,” as per the announcement Monday. Astrologically speaking, new Facebook Libra competitor is Venus.

How Binance new stablecoin compares with Facebook upcoming Libra

According to the announcement, Binance is planning Venus launch due to the fact that it has a presence in several countries, has its native blockchain Binance Chain in place, as well as it hopes to break the “financial hegemony” and reshape the world’s financial system.

Nevertheless, this new Binance’s blockchain project appears vastly different from that of Facebook, which hopes to deploy its own currency, Libra, from a Swiss bank vault governed by like-minded business, finance, and tech giants. 

On the other hand, Binance will be encouraging collaborators to build directly on its proprietary chain, Binance Chain, which uses a consensus algorithm known as Dpos (distributed proof of stake), with transactions validated by a handful of entities close and affiliated with Binance. And unlike Facebook Libra coin, Binance’s entrenchment within the cryptocurrency space and prior success with developing and launching tokens could give it an additional boost. 

What is more, unlike Facebook, Binance has a limited presence in the US—though it plans to soon relaunch its trading platform in the country—and is perhaps better positioned to mobilize communities in Asia and Africa, where it has already established a strong presence. 

In a bid to reshape the world financial system, Binance is now openly calling for the support of “government partners, companies and organizations with a strong interest and influence on a global scale to collaborate with them to build a new open alliance and sustainable community.”

In a statement regarding the new stablecoin project, Binance co-founder Yi He said:

We believe that in the near and long term, stablecoins will progressively replace traditional fiat currencies in countries around the world, and bring a new and balanced standard of the digital economy.” She added, “We hope to achieve a vision, that is, to reshape the world financial system, allow countries to have more tangible financial services and infrastructures, protect their financial security and increase the economic efficiency of countries.”

It is worth mentioning too that while Libra is expected to go live sometime in 2020, it has already faced scrutiny from central banks and politicians worldwide. Recently, Facebook said in a risk disclosure filed with the Securities and Exchange Commission (SEC) that Libra might never launch due to “significant” regulatory scrutiny.

Venus does not look to dominate Libra

After the announcement was made, Binance CEO Changpeng Zhao (“CZ”) tweeted that while Venus would help to push cryptocurrency adoption, it does not look to dominate Libra. “Always happy to co-exist. In fact, this should help Libra, if you think about it. Will leave it at that.”

Zhao’s tweet suggests that Venus could be targeted at countries where Libra won’t be allowed, such as China or India. Facebook recently confirmed that it wouldn’t launch its Libra coin where there are local restrictions.

At the moment, there’s a lack of concrete information about how the Venus project will work. AtoZMarkets will keep you updated as soon as more information becomes available to us.

Think we missed something? Let us know in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.