Leading cryptocurrency exchange, Binance has already stamped its authority as one of the largest businesses in the crypto space and is constantly looking for opportunities to strengthen its foothold.
Last month, Coinfomania reported that Binance was in talks with Facebook over their planned cryptocurrency project, Libra with the likelihood that the exchange will run a node on the global blockchain platform.
At this moment, though, it appears that Binance may no longer get involved with Facebook’s vision especially given the regulatory challenges faced by the social media giant on the path to unveiling Libra.
But Binance is doing more than just pulling out from any Libra plans. On Monday, the exchange announced that it was launching an open blockchain project, Venus, that seem to have all the attributes that Facebook wanted for Libra.
Facebook “Libra” and Binance “Venus” Similarities
Facebook’s Libra — a “stablecoin pegged to a basket of fiat currencies and other hard assets.”
Binance’s Venus — a project to “develop localized stablecoins and digital assets pegged to fiat currencies across the globe.”
Facebook’s Libra — needs the cooperation of other corporations and government agencies to become a reality,
Binance’s Venus — plans to “create new alliances and partnerships with governments, corporations, technology companies, and other cryptocurrency companies and projects.”
Facebook’s Libra — a product primarily targeting the ‘unbanked,’ to make money transfers as simple as sending a message on Facebook Messenger.
Binance’s Venus — a project that “will empower developed and developing countries to spur new currencies.”
Putting these similarities into perspective clearly indicates that Binance is unto building an ecosystem similar to what Facebook had in mind for Libra, and may have a better shot at it than the social media giant.
The other scenario may be Libra and Venus becoming direct competitors in the open market, while the time of launch and potential users become the deciding factor to which product scales faster.
On that front, Binance may have a slender lead given their already strong foothold in the crypto space, often highlighted by their ability to help projects raise millions of dollars through their Initial Exchange Offering (IEO) platform.
Also, while the blockchain for Facebook’s Libra is reportedly still in test net, Binance’s native blockchain (Binance Chain) which will house the Venus project has been “running securely and robustly” since June as stressed in the announcement.
In the end, it appears the crypto community will still get a version of Libra (whether they approve of it or not) and no it may not be from Facebook in 2020. Better still, we’ll have to wait and see which product takes off first, Libra or Venus?