Altcoin News: Binance Promises Not to Repeat Facebook’s Mistakes with Venus

August 30, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Cryptocurrency exchange Binance 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.

In a conversation with Bloomberg, Binance co-founder He Yi said the company will engage with regulators on Venus promotion from day one. He also confirmed that the main goal of the project is not Western countries.

“If we want to launch Venus in a country, we will make sure that it complies with the regulators,” he said.

Binance announced the launch of an initiative to develop local stablecoin 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 management structure and will be provided with a basket of national currencies and securities. At the same time, Binance will adhere to a “more conservative” approach, and the technological component of Venus will always be in second place — immediately after ensuring regulatory compliance.

“So far regulators around the world can’t gauge precisely the potential risks stable coins will bring to their financial systems, and that’s why they are very careful about Libra-like currencies,” said Hu Tao, founder of Beijing-based crytpo researcher TokenInsight. “In theory, Binance will face the same challenges as Facebook.”

Yi also said that to launch Venus, most likely, a new public blockchain will be created, and the existing Binance Chain will not be used for these purposes. The exchange expects to attract partners to its initiative using financial incentives, but so far this issue has not been worked out.

Author: Marko Vidrih