The largest cryptocurrency exchange in the world Binance, has announced plans to launch an ambitious project that will develop cryptocurrencies and digital assets that will be pegged to fiat currencies around the world.
The Monday August 19 announcement has revealed that the project is dubbed “Venus”. It will be a “localized” stablecoin initiative that will see Binance utilize its existing infrastructure such as its public Blockchain, Binance Chain, and international payment system, “to empower developed and developing countries to spur new currencies.”
The cryptocurrency exchange said that it is currently seeking to create new partnerships with enterprises, governments, and even other cryptocurrency and Blockchain firms to assist the effort. In its official reveal of the ambitious project, the exchange stated that it will “provide full-process technical support, compliance risk control system and multi-dimensional cooperation network to build Venus,” the statement added;
“Binance welcomes additional government partners, companies and organizations with a strong interest and influence on a global scale to collaborate with us to build a new open alliance and sustainable community.”
This is not the first Stablecoin project Binance will be involved in. The exchange has previously successfully launched two stablecoins. The BGBP, a stablecoin launched by the exchange and pegged to the British pound, and BTCB a stablecoin by the exchange pegged to Bitcoin. Both of these stablecoins are on Binance chain.
Binance co-founder Yi addressed the project by stating his belief that stablecoins would one day replace traditional fiat currencies as we know them.
“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. We hope to achieve a vision, that is, to reshape the world financial system, allow countries to have more tangible financial services and infrastructures, protect their financial security and increase the economic efficiency of countries.”
Stablecoins have been offered up as the solution to the nagging crypto volatility problem. Binance’s stablecoin projects appear to be designed to address that. Volatility is usually the first point made by cynics in their efforts to discredit cryptocurrencies. Facebook has made a presence in the cryptocurrency world lately with it’s much talked about “Libra” stablecoin project that has received more criticism than most stablecoin projects.
Facebook’s Libra has received backlash mostly due to its centralized nature which is unlike any other crypto project. This has not stopped Facebook from soliciting support from central banks and politicians alike. Time will tell what becomes of these stablecoin projects, and if they will sufficiently address the volatility problem so many complain about.
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