Not one to sit in the shadows for too long, Binance is ready to launch another blockchain project called Venus. Venus is an open blockchain initiative aimed at developing “localized stablecoins and digital assets pegged to fiat currencies across the globe.”
Of course, there has been another big stablecoin launch in recent months that seems to have died down somewhat – Facebook’s Libra. It could be argued that this move from Binance is competition for the social media’s giants foray into cryptocurrency, but one wonders if it will be met with similar regulatory hurdles.
What Binance can boast is a little more experience than Facebook when it comes to getting things up and running in the cryptocurrency space. The exchange has had massive success since its inception, branching out to decentralized exchanges, and recently upgrading to its mainnet, to the latest version, called Galileo.
It is off the back of this mainet upgrade, as well as their broad user base and understanding of cryptocurrency regulations that Binance feel that they are ready for this new venture. As a stablecoin ecosystem, Binance hopes to be able to court governments, corporations, technology firms, and other cryptocurrency and blockchain projects to be a part of Venus.
Stablecoins have come into quite high fashion in, and outside, the cryptocurrency space. It is not only Facebook that has been looking into the, but even nations on the scale of China, India, and Venezuela.
It is unlikely that these nations will be lining up to join Venus, but that is not to say that other, probably smaller, countries wouldn’t see the benefit of launching a stable coin and having Binance to back them up.
Companies and banks are also interested in what a stablecoin can do, and although the likes of JPMorgan have already gotten off the ground, Binance is another attractive alternative for those who want to follow the Wall Street Bank’s footsteps.
To be fair, Libra will probably not feel threatened by Venus – despite the astrological links in the names of the two – but the Facebook coin may well take note of Binance’s handling of regulators.
Libra faced heavy scrutiny when it announced itself with a lot of the issues not being with the coin, instead being with its parent company. Binance, as they even state in their release, have the regulatory know-how and can also leverage their existing infrastructure.