Binance Believes it can Manage Regulatory Issues Better than Libra
After the future of Libra was put in doubt, a number of projects have announced their intent to bring the same vision to life. A Bloomberg report details how top brass at Binance are confident of their ability to successfully launch Venus, with little friction from regulators, August 29, 2019. Venus will target partnerships with emerging market governments, claiming it aligns with Beijing’s financial infrastructure aspirations.
Bringing Venus to Life
Binance is growing confident in their ability to launch a stablecoin that is tied to a basket of fiat currencies for mass usage.
He Yi, the lesser-known co-founder of Binance, echoed Facebook’s sentiment that they will only launch their product after thorough consultations with authorities in jurisdictions they plan to launch in.
The exchange is actively seeking partners to help them turn this dream into a reality. He Yi stated that Binance drew inspiration from Libra (no surprise there), but wants to work on the shortcomings of the project; namely, their inability to sway regulators.
Just as Libra, Binance will set up a completely new entity to control the development of this project. In all honesty, it sounds eerily similar to Libra – and this is resonated by notable figures in the industry.
Hu Tao, founder of TokenInsight, believes that Binance is bound to face the same degree of regulatory scrutiny that Facebook saw. While concerns around Facebook are more centered around privacy and money laundering, governments would be wary of a pure cryptocurrency company setting up global financial infrastructure.
Redundant Project in Light of CBDC Launch?
He Yi stated that Venus is predicated on China’s digital ambitions, but does this make sense after China has finally announced their sovereign digital currency?
Looking at Venus with regard to the Chinese CBDC, it is quite simple to ascertain which of these two would be pushed by authorities in the country.
Venus would make sense as a pure emerging market play, excluding the larger countries like India, China, and South Korea. The lack of efficient financial services in Africa has long been a problem, initially tackled by m-Pesa and now being pushed forward by Ethereum and Cardano co founder, Charles Hoskinson.