So Binance just announced that they are basically going to launch a new project that is focused on Stablecoins - dubbed as Project Venus. The media is making it lookout to be a response to the upcoming stable coin to be released by FaceBook - known as Libra. However, whilst the 2 projects may be similar in some ways - they are completely different in others.
Here is a quick rundown on what you need to know;
- 4 days ago, Binance had announced their plans to initiate a new open blockchain, dubbed Project Venus.
- It is described as an initiative to develop localized stablecoins and digital assets pegged to fiat currencies across the globe.
- Notice the word ‘localized’ as this is a key distinction between Venus and Libra.
- Libra, the stablecoin set to be released by Facebook, is set to be a universal global stable coin. This means that there will be just one stablecoin not begged to any borders.
- Venus is a project designed to create localized stablecoins, which means there will be more than just the one.
- Yi-He, Binance co-founder, summed it up nicely in the following quote;
“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.”
- So, although it may look like they are competing on the surface - especially considering they share an astrological denominator, they are actually very different projects. Binance CEO, CZ, has even stated that they are “always happy to co-exist”.
- Regardless of wether, they are competing, according to many analysts, Venus is still likely to face the same regulatory hurdles that Libra is currently facing. However, Binance has the advantage of not being involved in such a worldwide public data breach of trust as Facebook has recently.