In what will come as a wonderful revelation, cryptocurrency exchange, Binance announced that it will specifically support fiat on-ramp via Over the Counter (OTC) against the Chinese yuan. News portal Coindesk reported that co-founder and chief marketing officer He Yi stated that in the coming months, the exchange would dedicate time and resources to expand in the Chinese market.
Yi added that the exchange planned to roll out a payment service which would allow users from nearly 170 countries to purchase cryptocurrencies through fiat currencies via the platform. The news portal noted that fiat-to-crypto OTC trading is a critical part in terms of fiat on-ramp for crypto traders, as the local Chinese authority clamped down on cryptocurrency trading by disconnecting banks and exchanges in 2017. The clampdown was a part of a ban on Initial Coin Offering. Since then Chinese exchanges such as Huobi and OKCoin have shifted their business overseas.
This announcement comes right after the cryptocurrency exchange stated that it was all set to launch its own version of Libra- known as Venus. Last month, Crypto Dost had reported that Venus was an initiative to develop localised stablecoins and digital assets pegged to fiat currencies across the globe.
The new initiative was being seen as a direct competitor to Facebook Libra which was also pegged to multiple fiat currencies. Libra aims to power a global payments system and Binance with its technical expertise and experience in the space is an able competitor.
Pushing adoption, yes. Domination, no. Always happy to co-exist.
In fact, this should help Libra, if you think about it. Will leave it at that. https://t.co/HLSywLb2mi
— CZ Binance (@cz_binance) August 19, 2019
Binance CEO Changpeng Zhao (CZ) however clarified that Venus is not in competition with Libra. Not only that, in June this year, the exchange said it would reportedly launch its own stablecoins in the next two months. Crypto Dost had reported back then that Binance was testing a new stablecoin backed by the British Pound called the Binance GBP (BGBP). A Bloomberg report had confirmed that it would be the first stablecoin launched by the exchange. The report had also claimed that the stablecoin would be fully backed by British Pounds and the company would make money out of interest earned on fiat deposits.