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Binance mentioned that unlike Facebook’s Libra, its Venus stablecoin won’t be a trouble for regulators and will help to bridge the gap between traditional financial markets and the crypto industry.
As the stablecoin race catches up, cryptocurrency exchange Binance wants to position its Venus stablecoin more aggressively. Taking a dig at Facebook‘s Libra, Binance said that the Venus will be a government-friendly alternative to the Libra Coin.
Last month in August 2019, Binance unveiled its plans to launch stablecoins and other digital assets pegged to fiat currencies across the globe. This initiative is part of the company’s plan to form major partnerships and alliances with global corporations, governments, crypto companies, technology companies etc. With this, Binance wants to position itself well among projects involved in the larger blockchain ecosystem.
During the launch of Venus, Binance CEO Changoeng Zhao said that their entry in the stablecoin market will, in fact, help Libra. But now it looks like Binance plans to enter in direct competition with Libra and convince the regulators before Facebook can manage to do so.
A Strong Competitor to Libra
During the latest OECD Global Blockchain Policy Forum, Binance’s Chief Compliance Officer Samuel Lim opened up about the company’s plan for Venus. Speaking to CoinDesk, he said:
“You could say it’s a response to Libra, or you could say it’s an alternative to libra. I would say it is like a strong competitor to Libra. We know what we are doing. It’s not like Facebook saying they are just going to put together a blockchain team. We have been in this business from day one; CZ has been doing this for more than ten years.”
Binance is smartly making moves saying that they wish to address the regulatory concerns expressed by governments on Facebook’s Libra. Lim said that Binance executives are in talks with several governments and policymakers and ensuring them that unlike the Libra, the Venus stablecoin won’t be posing any threat to the sovereign authority of their national currencies.
With Venus, Binance is looking to specifically target smaller countries with unbanked economies. He says that Binance wants to bring such countries in the mainstream financial ecosystem by introducing them to the global crypto market. Lim said that Venus will offer these central banks options that they never had before.
Moreover, Binance is majorly targetting developing nations feeling threatened by the arrival of Libra. Lim that developing countries are definitely “worried” about Libra. He added:
“That is basically the message we are sending today. You have the power. We are not taking any power away from you, which is different from Libra. Some might be saying ‘let’s try it out’, but there are others saying, ‘there’s no way in hell I will let Libra in my economy.’
Of course, the developed countries have the power to block it. But developing countries don’t have the financial power to say I’m going to block such a powerful corporation.”
Speaking about the company’s progress, Lim added that Binance is already setting up its foot in the African market by opening an exchange hub in Uganda. Lim refused to make any comment as to which country is currently exploring the option of introducing Venus stablecoin in its financial ecosystem.
“I can say this, in the next three to six months we are moving heavily towards partnerships with governments, central banks, and large corporates.”
While Binance has big plans in line, it is certainly not easy to clear the regulatory hurdles as we have seen in the case of Facebook’s Libra. But the growing competition in this stablecoin market will certainly push the regulators to think about the newly shaping payments industry.