By CCN.com: Binance has announced today its Venus stablecoin project that many deem as a competitor to Facebook’s upcoming Libra crypto. But Binance CEO Changpeng “CZ” Zhao thinks otherwise.
While Facebook seeks to conquer the global financial world with Libra, Binance wants Venus to stay in the regional waters instead, the company said in a .
According to the announcement, Binance will help the development of localized fiat-pegged stablecoins and other digital assets as part of its Venus project.
To facilitate the growth of the project, Binance is looking to create new partnerships with governments, companies, and other organizations involved in the blockchain space.
While this hasn’t been confirmed yet, it appears that the Malta-based company will develop Venus on the Binance Chain where it already created multiple stablecoins, including the bitcoin-pegged stablecoin BTCB and the GPB-pegged BGBP crypto.
Many in the crypto community have stated that Venus is Libra’s potential competitor.
CZ thinks otherwise, saying that Binance doesn’t want to dominate the stablecoin market with Venus. According to CZ, the goal with Venus is to boost crypto adoption, and the exchange’s upcoming project can potentially help Libra.
And CZ could be right here.
Velocity Markets Head of Business Development & Strategy Chris Wittenborn told CCN.com:
“Assuming full legal and regulatory compliance, anything that helps regulators become familiar with this ecosystem is a benefit for both Binance but also Libra as they might be able to learn from some of the successes and failures of Binance.”
According to Monica Eaton-Cardone, the owner and COO of the fintech cybersecurity company Chargebacks911, healthy, mutually beneficial competition between crypto companies will grow the size of the industry by increasing awareness and utility as well as normalizing its usage.
“Remember the classic line in all the old cowboy movies, ‘This town ain’t big enough for both of us!’? That’s how it is in the cryptocurrency industry right now, only we don’t know how big the town will be – or how fast it’s going to grow,” she told CCN.com.
Libra is the crypto of the corporate and tech world with the goal of serving the company’s stablecoin to millions of people as part of a global payment system Facebook is building.
While Libra is an open blockchain project, it is centralized and owned by Facebook, due to its massive potential impact on the world economy as well as the .
On the other hand, Venus is a crypto project that focuses on regional markets instead of serving the global market with one coin. Therefore, this could mean that Binance will create stablecoins for individual nations all over the world for locals to use.
As the two crypto projects serve two different purposes, people can use Venus for local national currency payments and Libra for global transactions side-by-side.
As both companies have ambitious plans for their upcoming crypto projects that could disrupt the world economy and the finance world, the two together will certainly boost crypto adoption in case they are proven successful.
Last modified: June 23, 2020 2:36 PM UTC