Many people aren’t sure what to think about Facebook’s cryptocoin Libra, or Binance’s recent announcement about their cryptocoin, Venus. One thing is for sure, they have nothing to do with astrology!
So what do we do with them? Is one better than the other. Well, I don’t have all the answers, but I do have an opinion.
First off, these two coins will be stable coins. That means each cryptocoin will be backed by a tangible asset. In this case, fiat money. Libra coin is back by US dollars. Each Libra coin will be worth approx $1.00. Binance says it’s coin, Venus coin, will be pegged to regional fiat currencies liked the Japanese Yen, Chinese Yuan, British Pound, etc. The idea is to use these digital currencies instead of your regular digital money (US dollars on your credit card), because using these cryptocurrencies will save you money in fees, and make it easier to buy things online. This is another step toward realizing The Web 3.0. An evolution of the internet.
Okay, now that we know why these stable coins were created, the next question is: why should we care about them? When might we use them?
As for Libra coin, unless you’re a Facebook, Instagram, or WhatsApp user, you might not need to care. But, if Libra manages to get through all the government regulation hurdles in front of it, I guarantee it will make buying things on these platforms much easier, and probably more fun. And remember, Libra isn’t the most important aspect of this cryptocurrency. Facebook’s wallet, Calibra, is where all the magic will happen. But beware; the wallet has eyes. ? I can also guarantee that Facebook will be watching your purchases through its wallet.
So what about Venus coin? Binance is undertaking a HUGE project with this venture. While Libra coin is looking to advance the internet a step closer to Web 3.0 with its comprehensive payment system across various social networks, Venus coin is looking to replace ALL fiat currencies with their cryptocurrency! Yes, you read that right.
“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.”
Just how they plan to accomplish this monumental task is the question. Here is an excerpt from a press release:
Binance co-founder Yi He summed up the aims of the new project in a statement:
“We believe that in the near and long term, stablecoins will progressively replace traditional fiat currencies in countries around the world, and bring a new and balanced standard of the digital economy.”
Like I said, this is a huge undertaking and I’m not sure they can pull it off. Unless you’re big into cryptocurrencies, or you live in Asia or China, Venus coin is probably not going to be a big deal.