There has been a lot of discussion lately about Facebook’s stablecoin, Libra, and the possible effects that it posed to the world financial system, but there is another reality emerging as well. That is, Facebook’s Libra has created a perfect model for other entities to follow, and Binance’s Venus stablecoin proposal is a prime example of that.
Binance’s Venus picking up the torch
The world’s largest cryptocurrency exchange, Binance, is well suited to pick up where Facebook leaves off. Libra promises to become a game-changer once it is released for several reasons. The stablecoin will be pegged to a reserve of fiat currency which guarantees its value, while at the same time providing efficient, low-cost financial services to users around the globe.
As a result of Libra’s tremendous potential to rock the global financial boat, Facebook has hit a flurry of roadblocks presented by government regulatory boards and international banking institutions. It may be up to a year before we see Libra released with the scope being potentially longer as well. Everything seems to boil down to whether Facebook can find a middle ground with those most affected. So, for now, Libra is at a standstill. The idea, however, is not.
Binance, the world’s leading cryptocurrency exchange based in Malta, is picking up where Facebook has stalled. Using a very similar model to that of Facebook’s Libra, Binance’s Venus seeks to foster greater financial control for people around the world.
Are Venus and Libra Worlds Apart?
The question as to whether Venus and Libra are worlds apart is a fair one, and the answer is no. Venus will be a stablecoin based on fiat currencies much like what Libra will be whenever it finally launches. The difference between the two, however, is that Venus will act as a platform upon which other stablecoins can be built.
Binance seeks to make it simpler for people around the world to adopt its software and create workable solutions for themselves by creating stablecoins tied to whatever type of asset is available, be it Bitcoin or government-issued currencies. Depending on the country in question, Venus-based coins could differ greatly from one to another, and it seems Binance is thinking ahead.
In many respects, Binance’s Venus might prove very useful for Facebook by showing the world how the model can work before Libra is eventually released.
A Strong Start
Being the ‘world’s largest cryptocurrency exchange’ it isn’t hard to imagine the extent to which their influence and resources are able to reach. Venus will allow users to take full advantage of the already established network that Binance has honed to be one of the most stable.
Binance Chain has already proven its effectiveness through two other Binance stablecoin projects in the past and seems to be the perfect platform to support the new Venus project. Not only that, but Binance has also announced that it will stand its blockchain providing full tech support to all stablecoins built on its code.
There is no question that what we are seeing is the start of something new. Facebook, with its billions of users, and Binance, allowing for more cryptocurrency transactions than any other exchange in the world, have exactly what it takes to drive this concept into the minds and lives of people around the world. We will keep a watchful eye on Venus, Libra, and any others that pop up, to get a better understanding of how the global financial system is going to change, but there is one thing that seems certain which is lower-cost transactions on a global scale.