Binance will release localized stablecoins by analogy with Facebook’s Libra
The leading crypto exchange Binance has announced its intention to launch a “regional version” of Facebook’s Libra cryptocurrency called Venus. According to official data, the main idea of the new coin is to fight the established financial hegemony, taking advantage of the company’s strong position as a leader in the field of cryptocurrencies.
Binance “hopes to harness the power of technological innovation provided by the time to provoke a new currency and create an independent “regional version of Libra.” The exchange intends to issue localized stablecoins that will “gradually” replace traditional fiat currencies.
Then, the exchange also notes that it will use its position as a successful blockchain company, which has managed to establish strong ties not only within the crypto community but also with regulators and other enterprises. Binance will provide full technical support, a multi-faceted collaboration network, and risk compliance to ensure that Venus does its job.
Binance explains that many jurisdictions, such as Malta, Switzerland, Uganda, Europe, and Africa, have already mastered this new technology. Besides, the latest developments in the Shenzhen Special Economic Zone, which included the research and promotion of digital funds, are a step in the right direction, which will contribute to the continued success of its cryptocurrency.
Like Facebook’s Libra, the Venus stablecoin will also have to comply with the existing regulatory framework, while Binance focuses on the events that must occur for their crypto asset to thrive. First, according to the announcement, central governments should establish a strategic position regarding blockchain and stable currencies. It is also said that private enterprises should be allowed to issue their own stablecoins and develop cross-border payment systems.