Venezuela To Launch Fiat Cryptocurrency Exchange Application
Startup Reserve, which is developing its own stablecoin, intends to launch an application to exchange cryptocurrencies for fiat money in Venezuela and Angola.
The application will be available to owners of devices based on Android OC and should appear on Google Play in the near future.
With it, users will be able to exchange fiat for stablecoin RSD, which is backed to the US dollar at a ratio of 1: 1 .
As stated in the Reserve, the RSD coin is an alternative to cash, which has relatively stable purchasing power, is characterized by high speed and low transaction costs, and it is “not suitable for criminal use.”
Note that last year more than 40 investors invested in a startup, among them well-known businessman and hedge fund manager Peter Thiel, Coinbase, Distributed Global and GSR.IO.
The press release notes that there are now 16 countries in the world with annual inflation exceeding 20%, but the situation in Venezuela is really alarming, as the Venezuelan bolivar loses 10% of its value every day.
Against the background of the rapid devaluation of the bolivar, the demand for cryptocurrency soared last year. Locals buy bitcoins through the LocalBitcoins p2p-platform, against the background of which trading volumes on the platform more than once reached record highs.
However, in February, just in a week, Venezuelans traded 17.1 billion Bolivars for Bitcoins.
It is noteworthy that the people of Venezuela come up with alternative ways to interact with cryptocurrencies. So, in March, during a massive power outage across the country, Venezuelans sent each other cryptocurrency via SMS.
Recall how Venezuela found itself in such a deep economic crisis, where did the national cryptocurrency El Petro come from and what’s wrong with it, and what role Bitcoin plays for citizens today.