Leading cryptocurrency exchange, Binance is urging entrepreneurs, companies, and governments across the world to develop “localized stablecoins” on its Binance Chain network in a project that they are calling “Venus.”

Venus project already supporting various stablecoins

The Binance Chain network was launched earlier this year, and already it is supporting an array of stablecoins, including a Bitcoin backed stablecoin BTCB, and the Binance token BGBP that is backed by the British Pound. The initiative will see the company use its existing infrastructure such as the Binance Chain and international payment. This will empower both developing and developed countries to encourage new currencies. Binance will offer technical support, compliance risk control system, as well as multidimensional partnerships in developing the Venus project through its infrastructure.

YI He, the Co-founder of Binance, stated that they believe that in the short and long term, stablecoins are going to replace fiat currencies in most countries. This will result in a new and secure standard for the digital economy. She added that Binance is hoping to achieve the goal of reshaping global financial systems and thus allow countries to have tangible financial services as well as infrastructures. This will be vital in protecting their financial security while at the same time, it will enhance the economic efficiency of different countries.

Binance’s Venus project uses a different model from Facebook’s Libra

The announcement from Binance comes at a time when major companies such as Walmart and Facebook have announced plans of launching their stable coins. The Venus project is different from Facebook’s Libra, which will be a currency of its own from a Swiss bank vault. Libra which will go live sometime next year targets the unbanked, and it will facilitate low fee transactions across the globe. However, Facebook has faced scrutiny from lawmakers and central banks across the world regarding privacy following the recent privacy scandals that the company has faced.

Binance has a different model, and will encourage partners to directly build on the Binance Chain that utilizes a distributed proof of stake model where entities affiliated and close to Binance will validate transactions. Binance is likely to edge Facebook because of its entrenchment in the crypto industry, and success in developing and launching of tokens. Another factor that will favor Binance is its limited presence in the US, thus, it will have the upper hand in Asia and Africa where it is already established.

In a tweet following the announcement, Binance CEO Changpeng Zhao stated that Venus is not looking to dominate Libra despite its vision of pushing for greater crypto adoption. Zhao added that they are happy to coexist and this move is expected to help Libra. The tweet is an indication that Venus will only focus on countries such as China and India, where it Libra won’t be permitted to operate.