Crypto Native Binance in Talks With Facebook
Revealed recently, crypto giant Binance may join hands with Facebook’s Libra project. Speaking to Bitcoin-friendly business news outlet Finance Magnates, Binance’s Gin Chao, the Strategy Officer of the renowned platform, revealed interesting details about the conversations the two entities have had.
He claimed that his company has been in contact (“official dialogue”) with Facebook about Libra, especially in regards to the listing of the soon-to-launch stablecoin, backed by Spotify, Uber, PayPal, Visa, Coinbase, and countless other corporate partners.
Apparently, talks remain in a “preliminary stage”, so Facebook hasn’t been all too keen about letting the cryptocurrency native upstart support Libra. This is also due to the fact that Chao claims Libra will first be hosted on a “private chain”, meaning that it wouldn’t make sense and may be logistically difficult for Facebook to “look for external liquidity” via exchange partners.
But, he does note that once Libra does find its way on to a “public chain”, which Facebook’s David Marcus has promised will happen in the years following the asset’s public launch, Facebook should seek listing via Binance. Chao even adds that it is within the Silicon Valley company’s best interest to allow for this to occur, as “currencies benefit from a secondary market”, presumably due to price discovery and an increase of liquidity.
The Binance executive team member adds that it would also make sense for Facebook to list its assets on other venues, presumably to maximize adoption and onramps to this fintech ecosystem.
In another interview, this time with BlockTV, Chao claimed that Binance is even trying to establish itself as a validator node of the Libra Blockchain, which purportedly cost upwards of $10 million upfront and hundreds of thousands a year to maintain. Facebook has pledged to expand its partner list from 28 at current to 100 by next year, but it is unclear if they are looking for firms in finance, technology, retail, or cryptocurrency proper.
Chao’s recent comment comes after an Ethereum community member, the head of SpankChain, shared a shower thought of his. In a thread, Ameen Soleimani explained that would be possible for developers and investors of the blockchain to pool capital to become a validator node. As to whether or not this happens remains to be seen though.
How Libra Will Aid Bitcoin
While it isn’t clear why exactly Binance wants to aid Libra, it may have something to do with how Libra will aid Bitcoin’s growth. As reported by Ethereum World News previously, by virtue of being a good technology, Libra will cause people, presumably millions or billion across the globe, to “question the properties of the U.S. dollar and how the banking system works.”
From there, analysts expect for Bitcoin to see a capital flow. Because the proper alternative to fiat currencies, in the eyes of many decentralists, is an asset like BTC, which is decentralized, trustless, permissionless, borderless, and programmable, among many things that make cryptocurrencies valuable.
And, as explained by Spencer Bogart, a prominent industry investor, Libra will boost cryptocurrency’s viability, catalyze the creation of related infrastructure in this sector, and create an on-ramp for BTC inflows.
Photo by Tim Bennett on Unsplash