Binance’s recent announcement sets Twitter on fire: “This is BIG. Binance is ready to dominate the world with by launching Project “Venus” and Rival Facebook’s Libra”.
These are words by Twitterian CryptosBatman (@CryptosBatman) that immediately caught the attention of Changpeng Zhao – CZ -, Founder and CEO of Binance. CZ seemed to have taken the strong statement quite seriously and rushed to publish a direct answer from his official account.
Crypto Twitter doesn’t seem to just simply listen to Binance’s official news and avoid associating it to Libra in particular, as social networks clearly demonstrate that this has become the trending topic of the day! Many crypto analysts have seen Libra as a new kind of “domination”, a term that was also the axis in recent hearings on Libra by US Senators.
CZ emphasizes on the idea that Binance’s new initiative, Venus, is not about domination: “…adoption yes. Domination, no.” The actual announcement, however, is only about the intention to launch an open Blockchain project on top of which a variety of stablecoins pegged to national currencies could be developed.
“Binance today announced its plans to initiate an open blockchain project, Venus, an initiative to develop localized stablecoins and digital assets pegged to fiat currencies across the globe. Binance is looking to create new alliances and 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.” (https://www.binance.com/en/support/articles/360032604131).
Stablecoins such as Tether, Dai, TrueUSD, USD Coin, Paxos Standard Token and Gemini Dollar, as well as many others, have been around for some time and are very popular. Nevertheless, a new generation of highly centralized stablecoins which could very well be the banking system of the future, is about to be born; decentralization believers worry about this.
Libra, for example, promises to be the opposite of Dai which is known as the most decentralized stablecoin. It will be closed, trusted, manipulatable by political powers and centralized in the hands of a small group of huge corporations where only a select few will have access. It is not for everyone. Anyone who believes in the principles of financial freedom and OpenFinance may worry that Binance wants to follow the same path as Libra.