Binance Announces Venus Project to Potentially Compete with Libra

Binance will create an open blockchain to run tokens pegged to local currencies.

Binance has unrolled another project in its portfolio, an open blockchain called Venus. The project will generate stablecoins based to local currencies, thus mixing a potentially global presence with a local impact.

But this time, Binance has not started the technical side of the project, instead making the announcement in an exploratory stage and calling to potential partners:

“Binance is looking to create new alliances and partnerships with governments, corporations, technology companies, and other cryptocurrency companies and projects involved in the larger blockchain ecosystem, to empower developed and developing countries to spur new currencies.”

The new blockchain is thus potentially open to suggestions and regulations. Still, Binance will advise on the creation of the network, using its experience from running Binance Chain. The CEO and co-founder of Binance, Changpeng Zhao, announced the project did not intend to compete with Libra:

This time, Binance surprised the markets by issuing the statement much earlier for Chinese users. Dovey Wan, co-founder of Primitive Crypto, noticed the announcement earlier, commenting that Venus may be beneficial to the adoption of Binance Chain.

Binance Chain already carries two derivative coins, BTCB, based on Bitcoin (BTC), and the BGBP, an asset pegged to the British pound.

Following the news, Binance Coin (BNB) recovered to a price of $29.03, adding a net 4% in the past day. BNB is now the sixth-largest asset by market capitalization, on track to overtake Litecoin (LTC), and is also one of the top gainers in 2019.

The approach of Binance somewhat resembles that of Facebook, which aimed to gather partners for the production, sale, and exchange for Libra. But the actual issuance of Libra is still under question. Creating a blockchain is easy, but gaining recognition for the value of the assets may be problematic, as some governments aim to limit digital assets in a way to hamper the creation of a grey economy.

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