It seems that whenever Facebook’s upcoming cryptocurrency Libra is out for the world, Binance will be among the first exchanges to list it. We’re saying this because according to latest reports published by two different sources Binance is in early discussions with Facebook to list Libra on its platform in future. And this information has been revealed to Finance Magnates not by any anonymous source but by one of the company’s prominent executives.
A major event called FinTech Junction is going on in Israel right now. Binance is also participating in the event, and it was at this platform when Finance Magnates staff got to speak with company’s CSO Gin Chao. While Libra will be on a private blockchain initially, and therefore will not be requiring external sources of liquidity, the company may still want to list it in secondary markets as it comes with many other benefits. Here’s what Chao said on the subject:
“We have had official dialogue with Facebook. With regarding to listings specifically, right now they are going to be on a so-called ‘private chain.’ So that means they won’t be looking for external liquidity. However, from what we understand the potential to be, that would lead them to wanting a secondary market. Currencies benefit from a secondary market, so it would be in their best interest to want to be listed.”
Chao also spoke to industry blog CryptoPotato at the same Tel Aviv event and said that Binance may support Libra by acting as a permissioned node that validates transactions. Here’s what he had to say when specifically asked whether Binance is considering to be a Libra node or not:
“We’re definitely considering it. And so, we would like to throw our hat in the ring. Whether or not we will become one, we’ll see.”
Facebook has already said that it plans to eventually have about 100 nodes in its network. Some of those node positions have already been picked by companies like Visa, Uber, Coinbase, eBay and Lyft. At the moment company has 23 node partners in its Libra Foundation.
Chao also said that whether Libra becomes incredibly successful or not, its entry into space is already a good thing for everyone. He said:
“It’s a good thing, for sure. Any time a company with the weight, size, resources, and impact of Facebook gets involved, it validates both blockchain and [cryptocurrencies]. So whether or not Libra becomes incredibly successful, it’s already a good thing.”
Now let’s see where these two companies go from this point.