One of the world’s largest cryptocurrency exchanges, Binance, has announced a plan to launch an open blockchain project called “Venus,” an initiative to develop localized stablecoins and digital assets pegged to fiat currencies across the globe.
As per the announcement published on August 19, 2019, the localized stablecoin initiative will leverage the exchange’s existing infrastructure (such as its public chain Binance Chain and cross-border payment systems), wide user base and established global compliance measures.
Bearing a similar vision to social media giant Facebook’s Libra, Venus, defined as a “regional version of Libra,” aims to break down financial hegemony and reshape the world’s financial system, which enables latecomers to have more initiative and stability in finance, as well as enhance the economic efficiency of countries.
The exchange says it is seeking “partnerships with governments, corporations, technology companies, and other cryptocurrency companies and projects involved in the larger blockchain ecosystem, to empower developed and developing countries to spur new currencies.”
“We believe that in the near and long term, stablecoins will progressively replace traditional fiat currencies in countries around the world, and bring a new and balanced standard of the digital economy.” said He Yi, Binance co-founder and CMO.
In its Chinese version of the announcement, the exchange notes that,
“Libras are growing at an exponential rate and will reshape the world financial system, bringing changes more than the internet. Instead of resisting change and losing the opportunity, it is better to embrace the change. Under the planned economic system, the successful experience of Shenzhen’s bold exploration of market economy is a good case. At the same time, Libras need to be developed in an orderly manner under the regulatory framework.”
In conclusion, it added three suggestions for Chinese regulators:
- The central government should establish the core strategic position of the blockchain industry and stablecoins in the future financial system.
- Regulators should establish a regulatory sandbox within a certain scope and pilot payment and settlement services based on stablecoins.
- Regulators should allow private enterprises to issue digital stablecoins and develop cross-border payment and settlement systems.
Prior to this announcement, Zhou Xiaochuan, the former governor of the People’s Bank of China, stated that Libra represents the trend of digital currencies, and that China should take precautions and undertake policy research.
Following that, Huawei founder Ren Zhengfei said that China can issue a libra-like currency to take the lead in the blockchain sector. Given these positive signals, the exchange is responding and acting fast. Its co-founder, He Yi, said that Venus is the “one-belt-one-road version of Libra.”