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”. Astrologically speaking, new Facebook Libra competitor is Venus.
The article was updated on 05 February, 2020 by Amicus.
How Binance New Stablecoin Compares with Facebook Upcoming Libra
According to the announcement, Binance is planning Venus (new Facebook Libra competitor) launch since 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 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. It uses a consensus algorithm known as Dpos (distributed proof of stake), with transactions validated by a handful of entities close. It also affiliated with Binance.
What is more, unlike Facebook, Binance has a limited presence in the US. It plans to relaunch its trading platform in the country soon. It perhaps better position to mobilize communities in Asia and Africa, where it has already established a strong presence.
Binance is Now Openly Calling for the Support
Binance is now openly calling for the support of “government partners, companies and organizations. It has a strong interest and influence on a global scale. It want 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 the world. It brings 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. Moreover, it allows countries to have more tangible financial services and infrastructures. It will protect their financial security and increases 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 target at countries where Libra won’t allow, 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.
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