The news that the new Binance cryptocurrency, named Venus, is on its way has raised a lot of eyebrows. The astrological name has led to it being linked to Facebook’s Libra project. Is it going to be a serious contender?
The Background
We can currently class Binance as the planet’s biggest cryptocurrency exchange. You can find a review of it here. Despite, a massive security breach earlier this year, it is widely regarded as being one of the safest exchanges around just now.
The company’s own description of Venus calls it an “independent regional version of Libra”. So it seems that the similarity in the names is more than just a coincidence. They say that they want to bring out this new Binance cryptocurrency in an effort to help define a new global financial system.
This currency is based on stablecoins. The co-founder of Binance, Yi He, is quoted as saying that they think that stablecoins will eventually “replace traditional fiat currencies”. Among the goals for this new coin are those of protecting financial security and increasing countries’ economic efficiency.
How Will the Binance Cryptocurrency Work?
Venus is planned as an open blockchain project that will develop localised stablecoins and digital assets across the planet. The Binance statement on the subject pointed out that they want to work partners. These include Governments, technology firms and other cryptocurrency companies. Their overall goals include empowering countries to bring out new digital currencies.
The Binance Chain that will help with this new cryptocurrency is already up and running. This is a worldwide blockchain ecosystem that allows for new stablecoins to be securely operated. Binance have already launched a Bitcoin-pegged stablecoin named BTCB and another that is linked to the British Pound (BGBP).
What Are Its Prospects?
The big question right now is whether Venus and Libra can both be successful. Or if it is the case of one or the other doing well? There is no doubt that both of them are similar. With Libra going live next year, it is looking to be a fascinating time in the crypto world.
Binance CEO Changpen Zhao issued a tweet saying that Venus and Libra could co-exist. This has raised the suggestion that the Binance cryptocurrency might be launched in countries like India and China. These are places where Libra isn’t going to be able to operate. An approach like this could make a lot of sense.
Until more details are known, one can only speculate about the outcomes and possibilities these two coins will have to offer. However, these developments sure seem like another big step forward to cryptocurrency adoption.