Photo Credit To Hemant Naidu Via Flickr
On Monday, August 19, Binance exchange announced plans to launch project Venus. The project is being billed as the regional version of the Facebook Libra project. It is worth noting that that Venus is the ruling planet of Libra in Astrology, which is why the team might have picked the name.
It has the Resources to Launch the Project
In the announcement, Binance explained that it already had the resources needed for this massive undertaking. For instance, it cited the fact that it has crypto exchanges all over the world. Additionally, the Binance Chain was already up and running. According to Binance, they want to launch the project to break financial hegemony and reshape how the world of finance works.
During an interview on the project, the co-founder of Binance, Yi He, said that Binance strongly believed stablecoins would soon replace fiat currency in various nations globally. She added that she hoped to make the vision of reshaping the finance world a reality. As a result, nations would be able to infrastructure and finance services that were more tangible. Additionally, it would make it easier for them to protect their financial security and increase the efficiency of their economies.
About the Venus Project
This will be an open blockchain project, which will create local stablecoins for various nations. The stablecoins are going to be pegged to the fiat currencies of those nations. To ensure the project succeeds, Binance plans to offer technical support, and a risk control system to ensure compliance with the regulation in various nations. Besides that, it will facilitate the creation of a multi-faceted network of cooperation on which Venus will be built. Binance added that it welcomed companies, global organizations, and governments to work together to ensure that Venus succeeded.
A Libra competitor
Libra, the project by Facebook, is quite similar to the Venus project. This project will serve the unbanked and it will make it possible to conduct transfers globally with low fees. It is expected that the project will go active in the summer of 2020. However, many governments and central banks globally will have already expressed concern about Libra. Facebook itself said that the project might never launch doe the various regulatory concerns.
Binance recently said that it believes Libra will grow exponentially and reshape how the finance world works. As a result, the company believes that governments and regulators should embrace change instead of trying to resist it. However, the cautioned that developing the Libra project needed to proceed in an orderly fashion and follow existing laws.
Not Trying to Dominate Libra
The CEO of Binance, popularly known as CZ tweeted that while the Venus project would help to grow the adoption of crypto, it did not want to dominate the Libra project. Instead, they would seek co-existence. He added that this project would most likely help the Libra project. This cryptic message could indicate that Venus will launch in nations where Libra faces too many restrictions.