Should Facebook Worry About Binance’s Libra-Killer “Venus”?
The most popular cryptocurrency exchange market, that managed to craft its reputation from scratch, and in a matter of years, Binance, announced recently its plans to create a global cryptocurrency of the likes of Facebook’s Libra. With confidence it will be much better and more successful in terms of global adoption, due to Binance’s already established network in the crypto industry.
Binance, which hosts more than 500 cryptocurrency trading options on its platform, processed over $5 billion USD just the past seven days.
The suggested currency, which is reportedly called “Venus”, is an “independent regional version of Facebook’s Libra”, according to the official announcement Binance made on August 19, 2019.
Unlike Facebook, which admits it has literally zero experience with cryptocurrencies, Binance has already its own digital currency, called Binance Coin (BNB), and it’s being used as a utility token between traders and investors, offering decreased transaction fees, voting power, as well as a stake in the fintech company.
BNB has a ROI of over +9000%, even today, where most cryptocurrencies seem to be moving with a “depressed mood”. People trust it and love it as it is literally the most important coin if you’re using Binance as your exchange medium.
The most important aspect that makes Binance a better candidate than Facebook, is not its experience in the distributed ledger tech sphere, but Binance’s political, and regulative knowledge, having strong ties with financial regulators and government organizations responsible for the embodiment of cryptocurrencies in their respective societies.
Take Malta as an example of Binance’s influence
Binance initially launched in China back in 2016. A time when regulations regarding cryptocurrencies were either extremely strict or absent, to begin with, not just in China, but on a worldwide scale.
Chinese internal laws subjecting digital currencies essentially forced Binance to move to Japan, then to Singapore, and eventually end up in Malta where it still operates nowadays.
Malta, being a relatively unknown Mediterranean island, and part of a tech-oriented Alliance with Greece and Cyprus, is now considered one of the most advanced and updated country when it comes to digital currencies.
Alongside Cyprus and Greece, Malta is one of the first countries to implement BA and MS courses in digital currencies in its academic system and has ever since contributed to cryptocurrency adoption and policy-research on a European level.
Malta is considered to be one of the most welcoming countries towards blockchain-focused startups and it offers excessive education, advice, and regulatory coverage of a DLT project’s legal affairs.
Binance’s approach on the future of the global economy
All that was only possible because Binance found a way to gather political power-brokers, financial regulators, and EU Commission Blockchain Observatory’s High-Level members, under the same roof in order to discuss cryptocurrencies and collectively create the background required for future adoption of this revolutionary, some would say “savior” technology.
Binance officials believe that Chinese and Korean counterparts of Libra, which we know are already ready to be deployed, will try to copy Libra’s operating protocol, while Venus offers an even more decentralized approach to a brand new global financial system.
Unlike Libra which will be working closely with central banks and financial institutions all over the world, Venus plans to offer an interconnectivity platform that will be able to host various government-issued, and enterprise-backed digital currencies under its umbrella.
That way, we don’t necessarily need a Libra-like currency, but we can use different digital currencies using Venus’ network.
Binance’s plan may seem ambitious, but the company has showcased multiple times its commitment to the digital economy that’s just around the corner, constantly evolving and developing new solutions that make cryptocurrencies safer to use, secure to exchange, and transparent to regulators and law enforcement, in order to fight cyber-crimes, money laundering, and other illegal activities.