The largest cryptocurrency exchange Binance have announced an Open Blockchain Project name “Venus” with the intention of issuing stable coins pegged to different currencies from all over the world with localized partnership with governments and organization. And according to Binance those stablecoins will be based on Binance Chain which was launched few months ago. This announcement came after regulators hammer on Facebook’s plan to launch global stablecoin under the name of “Libra”. Binance is calling this as an Open project because rather than just one entity (Binance) owning the whole stablecoin ecosystem, they will just provide full-process technical support, compliance risk control system and multi-dimensional cooperation network to build Venus, leveraging its existing infrastructure and regulatory establishments.
Binance also wants to include government partners, companies and organizations with a strong interest and influence on a global scale in the project and asking like minded people and organization to contact them at firstname.lastname@example.org.
The concept of Stablecoin in crypto space is not new as there are already plenty of stablecoin out there plegged to currencies. Examples of the best-known stablecoins include tether (USDT), trueUSD (TUSD), gemini dollar (GUSD), and USD coin by Circle and Coinbase (USDC). Stablecoins are designed to tackle the high volatility in cryptocurrencies price and to provide option for investors to quickly liquidate their crypto to remain in safe side during market crash. Stablecoins has lately become a fuel for decentralizated finance enabling loan services on smart contracts with cryptocurrencies as collateral.