In June 2019, Facebook announced the release of its native cryptocurrency called Libra. In the white paper, it stated that Libra is a stablecoin pegged to government currency.
Then, in the beginning of August, Walmart hinted the release of its own stablecoin tied to national fiat currency.
Now, led by their example, crypto exchange Binance announced their new stablecoin initiative. And this leads us to the topic of today’s article.
Open blockchain project called ‘Venus’
Binance has already launched two stablecoins, BTCB, which is pegged to bitcoin, and BGBP, tied to the British pound. However, this project is a bit different.
The project, named ‘Venus’, will develop stablecoins pegged to fiat currencies around the world. For this purpose, Binance will use its public blockchain – Binance Chain – and an international payment system.
In a statement released on its official website, Binance stated that it wants to create partnerships to empower the acceptance of stablecoins:
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.
The company also stated that it would provide technical support, a risk control system, and a cooperation network for anyone participating in project ‘Venus’:
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.
Moreover, in the end of the statement, the platform invites like-minded people and organizations to reach out and discuss the possibilities of the digital world.
It seems that stablecoins continue to gain in popularity. Possible reason for that is that they have various advantages over traditional cryptocurrencies such as bitcoin, and one of the most important is low volatility.
As more and more tech giants are developing their own stablecoins, we can say that this type of cryptocurrencies have bright future ahead.