Malta-based cryptocurrency exchange Binance has said it will take a “more conservative” approach that prioritizes regulatory compliance in the development of its own digital currency project, Venus, according to Bloomberg.

Why it matters: Binance, the world’s largest cryptocurrency exchange by traded value, is cautiously moving forward with plans to launch a Libra-like currency against a backdrop of heightened regulatory scrutiny.

  • Several central banks, including the People’s Bank of China (PBOC), have ramped up efforts to develop national digital fiat currency following the mid-June release of Facebook’s whitepaper on Libra, its much-hyped digital currency project.
  • The development of a central bank-issued digital currency has been ongoing for five years.

If we want to launch Venus in a country, we’ll make sure it complies with the regulations.”

He Yi, co-founder of Binance

Details: The cryptocurrency exchange said it would prioritize regulatory compliance over technological developments for the Venus project.

  • Binance plans to form an independent association that will be responsible for the digital currency and will use a basket of government-issued currencies and securities as its reserve.
  • Venus will focus on forming partnerships with governments and companies in non-Western countries, said He.

Context: Binance announced last week that news of the Venus project, which has been referred to as a competitor of Facebook’s Libra. However, the company said it would focus on the adoption of the digital currency in developing markets.

  • Binance CEO Zhao Changpeng, known as CZ, said the initiative aims not to dominate but to co-exist with Libra and its like.
  • The company published detailed research on Wednesday including its views and expectations regarding the development of China’s digital fiat currency.
  • China started clamping down on cryptocurrency exchanges in 2017, which led to a slew of platforms including Binance to set up shop in more crypto-friendly countries. Despite efforts to outlaw cryptocurrency, the central bank expects the digitalized renminbi would eventually replace physical money and give it more control over its financial system.

Nicole Jao

Nicole Jao is a reporter based in Beijing. She’s passionate about emerging trends, news, and stories of human interest within the world of technology. Connect with her on Twitter or via email: nicole.jao.iting@gmail.com.

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