According to unconfirmed reports making rounds in the crypto space, crypto giant Binance exchange may merge with Facebook’s Libra initiative. While speaking Finance Magnates, a Bitcoin-friendly news outlet, Gin Chao, who serves as the Strategy Officer of Binance, revealed interesting details relating to the conversations between Binance and Facebook over the Libra initiative.
Chao claimed that Binance exchange has been in contact with Facebook about its Libra coin. According to him, the contact was about the chances of listing Facebook’s soon-to-launch stablecoin. The GlobalCoin will be backed by Spotify, Visa, Coinbase, Uber, and PayPal, along with countless other partners.
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Talks About Listing Libra on Binance are Still in the Early Stages
Apparently, the talks between the two powerhouses remain in the preliminary stages. Which is why Facebook hasn’t been keen about letting Binance upstart support for Libra. This is because Chao claims Libra will be on a “private chain” first. This means that it would not make sense and it could become logistically hard for Facebook to “find for external liquidity” through exchange partners.
However, Chao notes that once the Libra coin finds its way to a “public chain” (something Facebook’s David Marcus promised), Facebook should seek listing of its stablecoin on Binance. Chao went on to adds that it is still within the Silicon Valley-based company’s best interest to let the Binance listing occur. Because currencies get benefits from secondary markets, due to price discovery and increased liquidity.
An executive team of Binance adds that Libra listing on other platforms will be good for Facebook, presumably to adequately maximize adoption to the fintech ecosystem.
Binance is Looking to Establish its Position as a Validator Node of Libra
In a separate interview with BlockTV, Chao said Binance is trying to be a validator node of Libra’s Blockchain. Facebook has promised to expand its list of partners from 28 to 100 next year. Although it is still unclear regarding whether Facebook is looking to work with only firms in finance, technology, and retail, or firms into cryptocurrency.
Chao’s comment comes after one Ethereum community member, shared his thoughts on the matter. In a thread, the Ethereum community member, Ameen Soleimani remarked that it would be possible for investors and developers of Libra’s Blockchain to pool capital and become the validator node. Whether this will happen or not remains to be seen.
How Libra’s Launch Will Benefit Bitcoin
While it remains unclear regarding why Binance wants to help the Libra course, it is suspected that this may have something to do with how the Libra will help Bitcoin’s growth. According to Ethereum World News, by virtue of being an excellent technology, Libra will make people (presumably millions or billion) all over the world, to ask “questions about the properties of the USD and the way the banking system functions.”
To this end, analysts expect Bitcoin to see more capital flow. This is because the correct alternative to fiat, in the eyes of the majority, is BTC, which is decentralized, permissionless, borderless, trustless, and programmable. These are the properties that make crypto valuable.
And, as highlighted by Spencer Bogart, a popular industry investor, the Libra coin will boost crypto viability, and catalyze the formation of related infrastructure in the sector. It will create an avenue for BTC inflows.