Venus cryptocurrency developed by Binance will not repeat Facebook Libra errors

One of the world's largest cryptocurrency exchanges, Binance, said it had learned a valuable lesson from the mistakes of the Libra Facebook project, and will use other methods to work on a rival Venus digital currency project, Business Times reports.

In an interview with one of the founders of Binance, Ms. He Yi (He Yi) said that Binance is ready to interact with all regulators from the first day, preparing for the release of digital currencies Venus.

“If we want to launch Venus in the country, we will make sure that it complies with the rules ,” said Hye Yi, who leads the group working on the legal basis of the Venus project, in an interview.

In mid-August, Binance announced that it plans to seek partners to create a stable coin – a digital currency tied to traditional currencies and, therefore, less volatile than cryptocurrencies , depending on market dynamics.

Unlike Libra, Venus will not focus on partnerships with governments and companies in Western countries. In his commentary, Yi described Venus as “a version of Libra in the context of the concept of “ one belt and one road ”, ” saying that its geographical coverage is approximately in line with Beijing’s initiative to combine the Silk Road Economic Belt and the 21st Century Sea Silk projects.

Ms. Hye Yi noted that Binance drew inspiration from the Libra Facebook project , but the resistance of global regulators to the social media giant served as a warning for the exchange. The businesswoman said that the company will use a “more conservative” approach to promote the project, with priority compliance with regulatory requirements, rather than technological developments.

Unlike Libra, Venus will focus on partnerships with governments and companies in non-Western countries.

“So far, regulators around the world cannot accurately measure the potential risks that stable coins will bring to financial systems, and therefore they are very careful with currencies like Libra. In theory, Binance will face the same challenges as Facebook , ”said Hu Tao, founder of Beijing-based analytics company TokenInsight.

From an interview with Hye Yi, it becomes clear that Binance is likely to create a new open source blockchain for Venus, rather than using its own Binance network, which already supports a number of stable coins.

The project is still at the stage of development of the roadmap and the deadlines are not indicated. He promises to provide more detailed information later.

Publication date 08/31/2019
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