Home Investing & Trading How Facebook’s Libra and Binance Could Partner Up

How Facebook’s Libra and Binance Could Partner Up

by Matthew Harris

As we all know, Facebook’s forthcoming Libra will be on a private blockchain initially and is slated to be a stablecoin, so it’s safe to assume that it won’t need external liquidity. However, according to a couple of recent interviews, there may be a scenario or two where we see some slight tweaks and even an outright partnership between the crypto-exchange Binance and Facebook’s Libra.

Gin Chao, Binance’s chief strategy officer, was at the FinTech Junction event in Israel a couple of weeks ago and in a couple of interviews he revealed that they’d had discussions with Facebook over possibly listing the Libra token and that they’ve “had official dialogue with Facebook” specifically regarding listing.

“Any time a company with the weight, size, resources, and impact of Facebook gets involved, it validates both blockchain” as well as cryptocurrencies according to the CSO.

Even without the need for external liquidity, Chao said that due to the potential of Libra, Facebook may ultimately desire a secondary market and that “Currencies benefit from a secondary market, so it would be in their best interest to want to be listed.”

While Chao admitted that these discussions were in the very preliminary stages and mostly focused on Libra’s infrastructure, he also revealed that there may be another way that Binance and Facebook could partner up.

Facebook has already announced that leading corporations such as Visa, Uber, eBay, Vodafone, and Mastercard will be acting as a permissioned nodes that validate transactions, and Chao says Binance is “definitely considering” joining those ranks.

It’s clear that Chao, and by extension Binance, is considerably excited about Libra’s potential as well as its impact on altcoins and the cryptocurrency industry as a whole. Furthermore, he doesn’t think Binance will be the last stop for the social media giant, saying that “it’s going to be in Facebook’s best interest to consider being listed on other exchanges as well.”

Whether Libra will be the positive impact he seems so hopeful for or it brings down a torrential downpour of investigations and regulations remains to be seen. The case can be made for both sides at this point and the next few weeks and months will definitely be rather interesting.

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