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Binance Exchange Set to Roll Out an Independent Regional Version of Facebook’s Libra

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Binance Venus

Binance may have decided to compete against Facebook’s Libra stablecoin as the exchange unveiled plan to launch “Venus.” According to the exchange, Venus is an open blockchain project that will develop localized stablecoins. Binance unveiled that it would work with a network of partners from across the globe.

According to a report, the Venus project aims to create digital coins pegged to fiats in many countries. In so doing, the project would “empower developed and developing countries to spur new currencies”. To help see this initiative through, Binance seeks to forge new partnerships in different sectors. These include, but not limited to joining hands with crypto firms, tech companies, and governments.

Announcing the plans to roll out Venus, the exchange noted,

Binance welcomes additional government partners, companies and organizations with a strong interest and influence on a global scale to collaborate with us to build a new open alliance and sustainable community,

Binance Chain would serve as the foundation for the Venus project. It has released several stablecoins including the British Pound-pegged (BGBP) and the bitcoin-pegged (BTCB). However, it seems Binance will have to put in a lot of work when it comes to the creation of these new coins.

Libra’s Competition

While Binance has not unveiled the full details of the Venus project, experts believe it would rival the Libra project. Their conclusions come from the fact that Binance, a leading exchange is working with global partners to create stablecoins.

The English version of the announcement does not mention Libra directly. However, the Chinese version paints the project as Libra’s competitor. It states that Venus is the “independent regional version of Libra”.

Nonetheless, the two projects have major differences. For instance, Facebook has already created a committee to govern Libra, while Binance has just begun searching for partners. Also, Libra’s use would be worldwide, while Venus’ use would be regional. Furthermore, Facebook is behind in terms of blockchain development compared to Binance.

The social firm has been working on its blockchain network for the past few years and is currently in the testing phase. On the other hand, Binance has a fully operational blockchain network that has already issued several coins. On top of this, Binance is a trusted firm in the crypto sphere, unlike Facebook, which has had cases of poor protection of customer data. The firm also has a record of a failed crypto project dubbed “Facebook Credits virtual currency”.

This news comes after Binance’s CEO, Changpeng Zhao predicted that the exchange would resume operations in the US in two months. Prior to this, Binance had suspended crypto-to-fiat trading in the country. This temporary restriction on trading sought to the exchange time to partner with BAM Trading Services to create a new division in the US.

Do you think Binance’s Venus project aims to rival Facebook’s Libra project? Let us know in the comments below.

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