Binance’s Venus will Face the Same Challenges as Facebook’s Libra, says Crypto Researcher

  • Libra to serve as a cautionary tale for Binance’s Venus
  • The exchange is planning to launch an independent association in charge of stablecoin project
  • Instead of Western companies, Venus’ geographic scope aligns with Beijing's infrastructure initiative

Last week, the world's largest cryptocurrency exchange Binance announced its upcoming project, Venus.

With that the Mata-based crypto platform became the latest one to join the list of companies coming up with their stablecoin after Facebook’s Libra.

Libra, however, does not paint a picture of confidence as, since its announcement two months back, regulators have shot criticism at the project.

From Bank of England Governor to Federal Reserve Chairman, ECB President, US Treasury Secretary, and other authorities, all have raised concerns including privacy, money laundering, consumer protection, and financial stability.

Facebook has now hired a lobbying firm to help with the regulators. However, Binance has learned from this push back and as such will take a different approach.

“If we want to launch Venus in a country, we’ll make sure it complies with the regulations,” the exchange’s co-founder He Yi told Bloomberg. For this project, Binance drew inspiration from Libra in many ways but resistance from the government will serve as a cautionary tale for the firm.

Binance announced that it is looking for partners to create the stablecoin that will be pegged against a basket of government-issued currencies.

Just like Facebook’s Libra Association for its cryptocurrency, the exchange is also planning to form an independent association in charge of Venus. But the company, He said, will take a “more conservative approach” to push through the project, with a focus on regulatory compliance instead of technological developments.

Notably, Venus will focus on partnering with companies and governments in non-Western companies. The “belt and Road Version of Libra” has its geographic scope roughly align with Beijing's infrastructure initiative.

China, meanwhile, is ready to launch its central bank digital currency (DC/EP) after five years of research.

“So far regulators around the world can’t gauge precisely the potential risks stable coins will bring to their financial systems, and that’s why they are very careful about Libra-like currencies,” said Hu Tao, founder of Beijing-based crypto researcher TokenInsight. “In theory, Binance will face the same challenges as Facebook.”

At the time of Venus reveal, unlike other times, Binance released two separate announcements and in the Chinese statement, it advises the government to launch a regulatory sandbox that allows private firms to issue their own stablecoins.

“It’s better to embrace the change rather than missing the opportunity,” read the statement.

As for the launch, currently there is no time but in the next few months, more details including partnerships are expected to be released, He said.


Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide