Binance promises not to repeat Facebook’s mistakes when launching Venus regional stablecoins
Binance cryptocurrency exchange will take into account the problems with regulators that Facebook had to face after the announcement of the Libra project when developing its own stablecoins as part of the Venus initiative.
Speaking to Bloomberg, Binance co-founder He Yi said the company will be working with regulators from day one to promote Venus. She also confirmed that the main goal of the project is not Western countries..
“If we want to launch Venus in a certain country, we first make sure we meet local requirements,” said He.
Binance announced the launch of the initiative to develop local stablecoins last week. He noted that the project was indeed inspired by various aspects of Libra..
Like Libra, Venus will use an independent association in its governance structure and will be backed by a basket of local currencies and securities. At the same time, Binance will take a “more conservative” approach, and Venus will always be in second place – once it is in compliance.
“So far, regulators around the world cannot accurately assess the potential risks of stablecoins to their financial systems. It is for this reason that they are extremely wary of currencies like Libra, said Hu Tao, founder of research firm TokenInsight. “In theory, Binance will have to face the same challenges as Facebook.”.
He also said that a new public blockchain will likely be created to launch Venus, and the existing Binance Chain will not be used for this purpose. The exchange expects to attract partners to its initiative with the help of financial incentives, but to date this issue has not been worked out.
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