Binance has just announced the Venus project, “an initiative to develop localized stablecoins and digital assets pegged to fiat currencies across the globe”.
This project sounds familiar because it was the exact idea released by Facebook two months ago with its stablecoin, Libra. Libra has not yet released and is slated to launch in 2020, if it receives all the regulatory green lights. Considering that most financial regulators in the US and abroad are wary about the digital currency and its effects on the financial space, it is highly uncertain if Libra will be able to launch according to the proposed timeline.
Most likely, Binance does not face this problem. It has an existing regulatory network around the world and it has plans to have a multi-dimensional compliance and customer network system. It also has an existing blockchain ecosystem on which it has been issuing a range of stablecoins already. These include the Binance BGBP Stable Coin which is pegged to the British Pound and the BTCB, a BTC-pegged stablecoin. It thus plans to leverage this existing infrastructure and regulatory establishments to launch and potentially, dominate, Libra.
Facebook has a userbase of about 2.2 billion, one of the reasons why people believe it will change the digital currency landscape completely. Due to their global dominance, it is also believed that Libra will quickly rise to the top. However, China-based Binance is the world’s largest cryptocurrency exchange and can target a market which Facebook cannot: China. It is thus very possible that Venus is exactly what can provide Facebook with stiff competition.
Binance has encouraged governments and companies around the world to collaborate on the Venus project as it will give them the upper hand by being a ‘first-mover’ like Bitcoin.