Facebook’s Libra faced enough regulatory heat but that did not deter the competitors to be inspired by the stable coin that is still months away from its launch.
Malta-based cryptocurrency exchange Binance announced on its Project Venus on 19th August where the stable coin will be pegged to US dollars or gold. Binance holds an upper hand in the cryptocurrency space as the largest cryptocurrency exchange by volume. Inspired by Facebook’s Libra, the stable coin project by Binance will also be an open blockchain project. Once developed, the platform will support the development of localized stable coins. The world has been witness to the negative attention Libra attracted, Binance seems to have circumvented the whiplash by keeping the announcement discreet on their official website.
As per Yi He, co-founder Binance, in near future the traditional coins will be replaced by stable coin and a new digital economy standard would be established. Sharing his vision, Yi He added they wish to reshape the financial system across the globe to add tangibility, securities, and efficiency. Currently, Binance is exploring the possibilities to partner with government bodies and enterprises that are ready to introduce and support stable coins.
The Binance Chain infrastructure and its cross-border payment system will presumably be used to support the new stable coins. In the past Binance has launched many stable coins like BTCB (Bitcoin-pegged) and BGBP (British Pound-pegged). Right now Libra is a step ahead of Venus as Facebook has already partnered with multiple enterprises to support the existence of Libra but Binance, on the other hand, has just announced the Venus stable coin inviting participants to its platform.
As per the official announcement by Binance, the existing technical infrastructure, risk control system and network would be used to support the development of Venus. Despite the market turbulence caused by Libra, Binance braved the initiative to be inspired by the project and announcing its own stable coin launch. Venus will have an advantage over Libra as Binance is a well-established and trusted entity in the crypto-space.
While all this is happening, a six-member delegation of the United States House of Representatives is visiting Switzerland to meet Adrian Lobsiger, Federal Data Protection, and Information Commissioner (FDPIC) of Switzerland with Libra as the prime focus.
The delegation is led by Maxine Water, chairwoman of the House Financial Services Committee, who previously contented launch of Libra due to the risks it could inject into the financial systems.
The Libra coin is expected to be regulated from Switzerland. David Marcus, the Libra Project Lead has repetitively assured the house that they are in touch with the Swiss Financial Market Supervisory Authority. On the other hand Hugo Wyler, head of communications FDPIC stated that they received no communication from Facebook regarding the Libra registration.
The Libra association has been asked to provide the project status so that FDPIC could conclude what kind of supervisory powers would be required over the execution of the project.
Amidst all this, Binance is expected to tread carefully around the regulations to launch Venus.
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