Binance Positions Its Project Venus Stablecoin As Government-Friendly Libra Competitor
Binance, one of the largest crypto exchanges in the world, is marketing its new stablecoin Venus as an alternative to Libra that can be really friendly to governments.
The project was revealed last month, when the CEO of Binance, Changpeng Zhao, affirmed that the company would be creating several stablecoins around the world.
Now, the company is pushing forward the narrative that its token will be just like Libra, except more government-friendly. According to Zhao, Binance does not want to dominate the market, however. The main goal is to “push adoption”, not take the whole market to itself. He even affirmed that the project might end up helping Facebook’s Libra project in the long-term scenario.
Despite all the nice words, however, it is clear that Venus wants to compete with Libra. Samuel Lim, Binance’s Chief Compliance Officer, has recently affirmed that the team is talking with central banks and regulators about the future.
Many regulators are concerned that Libra could take over national currencies, especially in countries with inflation problems. Because of this, the company is sending a message that they are not like Libra and will not take the power away from them.
Especially in developing countries, many people are worried about Libra. Some of them know that they do not have the power to block Libra if the developed countries do not do a thing about it.
Unlike Libra, which will have private parties controlling it, Venus will let the local governments determine how these tokens can work. This would give them additional protection that their competitors are not interested in giving. By catering to central banks, Binance’s Venus is cleverly carving its place in the market.