A surprise announcement hit the cryptoverse today as Binance shared its plans to develop its own Libra competitor – Project Venus. Initiated as an open blockchain project, Venus will create stablecoins worldwide that are pegged to local fiat currencies.
What is Binance?
Binance is a cryptocurrency exchange widely popular with the digital asset community. The name “Binance” is actually a combination of two words: Binary and Finance. Based in Tokyo and led by the influential Changpeng Zhao, the Binance Exchange offers liquidity for cryptocurrency traders who enjoy peer to peer trading. Binance also offers its own crypto wallet and native cryptocurrency – the Binance Coin (BNB).
Overall, Binance is currently listing as the number one cryptocurrency exchange on CoinMarketCap, with over 400 markets and an adjusted volume of over $900 million. In addition to offering crypto market liquidity, Binance provides low transaction fees plus discounts for using the Binance native coin (BNB).
The Binance platform recently delved into the ICO movement with its Initial Exchange Offerings (IEOs). These offerings enable approved crypto issuers a guaranteed listing. It also now provides marketing support and compliance for the launch of each token project on its platform. Binance in general has been an innovator to watch in the exciting new cryptocurrency industry.
What is a stablecoin?
Stablecoins are a unique class of cryptocurrencies that can provide a higher level of stability. By holding other assets in reserve as a backing (such as USD or Yen), a stablecoin can help stem the volatility that is intrinsic to emerging crypto markets. By incorporating stablecoins into Project Venus, Binance hopes to offer crypto users the “best of both worlds”. In essence, it will combine fast, secure payment processing with stable crypto coins that link to fiat currencies.
Binance’s intentions with Project Venus
Binance voiced its intention in today’s announcement to forge new alliances with governments, corporations, tech projects and crypto initiatives across the globe. With Project Venus, their goal is:
“…to empower developed and developing countries to spur new currencies”Project Venus Announcement
This theme is all too familiar as in recent months, Facebook’s Libra coin has dominated the crypto news. When Facebook announced their plans to create a worldwide blockchain project to bank the unbanked with the Libra stablecoin, regulators swooped in with metaphorical fists of fury to squash it out. Mainly, their reaction stemmed from Facebook’s numerous data breaches during its colorful history, but also the fear that Facebook could essentially become a new central. Regardless, Libra is still under development and CEO Mark Zuckerberg remains dedicated to following through.
Project Venus – advantages over Libra
Can Facebook can follow through with their plans amid regulatory hell and with a reputation for not being trusted? This remains to be seen. But the data giant certainly has the resources and legal team standing behind it.
On the other hand, Binance will utilize its established public chain technology and already functioning cross border payment mechanism to securely enable the creation of multiple stablecoins. In the past, the company has issued several stablecoins. This includes BTCB, which is pegged to bitcoin, and BGBP, which is correlated to the British Pound.
Binance will also provide tech support plus compliance and risk control during the construction of the Project Venus stablecoin network. Its current regulatory approach along and an already massive crypto infrastructure puts Binance leagues ahead of the Libra project.
What happens next?
Directly following the Project Venus announcement, the crypto market saw a substantial jump in the price of both bitcoin and BNB. Crypto traders and blockchain enthusiasts alike will surely enjoy reading about all the future developments.
If you have an interest in globally scaling cryptocurrency to enable a worldwide, sustainable community, Binance and their Project Venus invites you to contact them for collaboration opportunities.