Yuri Molchan

Dash Becomes Crypto Champion in Venezuela As Bolivar Fades in Hyperinflation

Dash pushes out Bitcoin on the largest Latin crypto exchange
Dash Becomes Crypto Champion in Venezuela As Bolivar Fades in Hyperinflation

Over 500 trading companies in this Latin America country now take Dash for their goods and services, among them are the leading companies in the sphere of real estate, car industry and bakery shops.

High level of Dash adoption

This coin, providing peer-to-peer payments is conducting a mass spreading in Venezuela, resulting in getting the unofficial status of the top virtual coin for payments in this country, even exceeding the popularity of the government-back Petro.

As of now, around 10,000 people are using Dash in Venezuela, also 500 merchants with 10 non-governmental companies.

Over 50 workers are getting salaries in Dash, among them are the employees of Dash Help, Dash Merchant and other similar ones, associated with the currency. This results in the fact that so far Dash is the virtual asset that has impacted this country most. It has been involved in daily transactions for selling and purchasing, not only as an investment product. This is the only crypto that has got up to this high level of adoption in Venezuela.

💼 Related Article
Five Best Bitcoin Mining Hardware 2018
🔥 Hot
4 months 3 weeks
256
Five Best Bitcoin Mining Hardware 2018

Dash is number one in crypto trading too

A Latin American exchange Cryptobuyer that also deals with ATMs and merchant solutions state that Dash is one of the two top traded coins on this market. This exchange first launched trading pairs with this token back in 2017 in Latin America and in Venezuela.

The second top currency is Bitcoin, every month these two assets are competing for the highest volume of transactions, so far Dash is the winner.

Why Dash?

The increase of this coin’s use in Venezuela enables its citizens to avoid the impact of hyperinflation. Its recent figures have reached one million mark according to the Bloomberg Cafe Con Leche Index. This means that a cup of coffee is now worth one mln bolivars, the local fiat currency.

Since January last year the growth of Dash has exceeded 2,000 percent, so now it seems to be a good solution for Venezuelans struggling to survive in their own country.

💼 Related Article
Could Two Sheriffs Share Same Town? Analyst on Role of Bitcoin in Coming Financial Crash
🔥 Hot
5 months
256
Could Two Sheriffs Share Same Town? Analyst on Role of Bitcoin in Coming Financial Crash

views
👓 Recommended articles
David Dinkins

Bitcoin Truly Shows its Usefulness in Failed State Like Venezuela

Bitcoin may not seem useful as a currency in the developed world, but in a failed state it’s a life saver.
Bitcoin Truly Shows its Usefulness in Failed State Like Venezuela

Bitcoin and other digital currencies reveal their greatest potential in “failed states,” according to Wired. In nations like Venezuela, where the national currency is essentially worthless, Bitcoin is a life-saver to those who can access it. In Venezuela, many needed products are only available from foreign countries or on the nation’s black market, and those sellers do not accept Venezuelan bolivars.

Volatility

Many first-world bankers, such as the governor of the Bank of England, Mark Carney, have condemned Bitcoin due to its volatility. The price of Bitcoin peaked in December, reaching nearly $20,000, before declining to present-day prices of $8,600. While such volatility may make the currency less useful as a medium of exchange in an advanced economy, not so in Venezuela.

Venezuela experienced an inflation rate of 2,600% last year. For Venezuelans with access to Bitcoin, even a 50% drop in the value of the digital currency is nothing compared to how much they would lose just by holding on to their nation’s currency. Wired tells of one Venezuelan who converts Bitcoin to bolivars immediately, at the cash register, in order to protect himself against the nation’s crippling inflation rate.

Not a currency?

Mark Carney made headlines earlier this year when he stated that Bitcoin had “failed” as a currency. To the extent that he’s speaking of developed nations, he may be correct. Though a growing Bitcoin with a larger market capitalization will eventually be much less volatile than it is today, at the present time Bitcoin’s volatility does weigh heavily against it. But in a state such as Venezuela, Bitcoin is the only thing allowing some people to survive.

In that country, foreign currencies ownership is not permitted, with dollars and other global currencies only being available on the black market. Bitcoin therefore fills a crucial gap when it comes to maintaining the value of Venezuelans’ savings. Not only that, but over the long term Bitcoin is appreciating in price, which could lift many in the broken nation out of poverty forever.

views
👓 Recommended articles
Darryn Pollock

Zimbabwe’s Broken Economy Forces Country to be a Cryptocurrency World Leader?

Zimbabwe is a broken economy and it is starting to think outside the box, could cryptocurrency be the answer that saves its economy?
Zimbabwe’s Broken Economy Forces Country to be a Cryptocurrency World Leader?

The economy is Zimbabwe has been in decline for over a decade now, moving on from its hyperinflation that led to trillion dollar notes being printed, the Southern African country has canned its own currency and now uses the US Dollar.

For this very reason, cryptocurrency enthusiasts have often thought that the answer may lie in cryptocurrency, in the same way as the falling economy in Venezuela is being propped up by things like the Petro.

There is no doubting that cryptocurrency has a lot of potential for countries that are in trouble economically, but it is up to the government to try and implement it in a way which hits all the right notes, and perhaps Zimbabwe could become the first to get it right from dire situations.

Recently, Zimbabwe’s newly minted Minister of Finance, Mthuli Ncube, has seen the potential in cryptocurrencies and is ready to nudge the central bank to establish a cryptocurrency division.

Becoming more like Switzerland

Ncube has noted how cryptocurrencies are being used and embraced in world-leading countries, such as Switzerland- and it has actually encouraged a full reversal as there was a time not too long ago when the Central bank was trying to ban cryptocurrencies.

Ncube has cited an example from Switzerland, and its use of cryptocurrencies, in a progressive manner.

“One can pay for travel using Bitcoin in Switzerland. So, if these countries can see value in this and where it’s headed, we should also pay attention,” Ncube said. “We have innovative youngsters so the idea shouldn’t be to stop it and say don’t do this, but rather the regulators should invest in catching up with them and find ways to understand it, then you regulate it because you now understand it.”

It is a positive stance from a major head in the Southern African country, and while there are a lot of progressive regulators and governmental heads embracing cryptocurrencies, Zimbabwe’s situation puts it in a unique space where it can build a whole new economy around a digital currency that could leapfrog it into the future.

Starting from the ground up

With Zimbabwe tied to the US Dollar as its main currency, the ability to move away from that, and perhaps solely to digital currency, would free it of sanctions and regulations from the US which are no doubt suffering it.

With cryptocurrencies, Zimbabwe will not be beholden to another nation, rather they will be reliant on a decentralized system and thus have no hangovers from utilizing another currency. It will also allow them not only physically claim independence but help in reinventing their entire economy.

Bitcoin has already shown to be in high demand among the Zimbabwean citizens, in fact, when their only Bitcoin ATM went down, there was a bit of an uproar. And this is understandable as Bitcoin offers a lot for the unbanked.

Zimbabwe has a large rural population that has nothing to do with banks, and if there was a mass adoption of Bitcoin or other cryptocurrencies, suddenly, there is no need for citizens to push to have a bank account and be tied into the difficulties that brings.

Additionally, Zimbabwe has a population that has migrated out of the poverty-ridden state in search of jobs, it means that those who leave for places like South Africa and Kenya struggle to send money back home because of fees and waiting times. Something like cryptocurrencies would be able to truly alleviate those difficulties.

A unique position

While there are clearly a lot of advantages for Zimbabwe to embrace cryptocurrencies in their current state, the advantages down the line could be truly redefining for the African nation. Should the government get their application of cryptocurrencies right in a country that does not have an established economy, they could become pioneers for the future.

While other countries look to slowly embrace and implement cryptocurrency, Zimbabwe could be streaks ahead when the potential Blockchain revolution comes. If they are ahead of the curve in this technological and economic stance, it could mean they become world leaders in the next 10 or 20 years.

views
👓 Recommended articles
Darryn Pollock

North Korean Mining Exploits Just One Way For Countries to Profit and Grow

North Korea has reportedly been tapping into the power of cryptocurrency mining to help boost its self, but that’s not the only way crypto is coming to the rescue
North Korean Mining Exploits Just One Way For Countries to Profit and Grow

While it was probably the worst kept secret, it has emerged through a South Korean report that its neighbor from the North has been mining cryptocurrency. It is also unsurprising as the decentralized and amoral nature of cryptocurrency means that it is available to all to use how they please.

It has also seen the likes of Iran and Venezuela develop their own cryptocurrencies in order to bypass sanctions installed on them by world leaders, the US. Some will be very skeptical and against the likes of these so-called rogue nations getting a foot up by cryptocurrencies, but it is true libertarianism in action.

The global make up has been built and fashioned around a strong Western Core with the likes of NATO and the UN dictating the way in which things should be done, however, cryptocurrencies do not adhere to the societal norms and cannot be controlled or used for one agenda or the next.

It opens up a huge philosophical debate, but before right and wrong can be answered for, it must also be remembered that these cryptocurrencies are also helping the poor and downtrodden when their so-called sovereign governments have let them down, such as in Zimbabwe and again in Venezuela.

Mining more money

The emerging crypto ecosystem that is sweeping globally, while remaining anonymous has created a perfect market for a country like North Korea to create money out of nothing more than electricity.

The cryptocurrency mining space has evolved from individuals with GPUs to major mining pools and companies, such as Bitmain. But, North Korea has proven that on a state level, there is an opportunity for governments to also profit- especially seeing as they run the electricity.

This creation of cryptocurrencies means that the North Koreans have an asset that is in demand that they can sell while remaining anonymous. This leaves any sort of sanctions or halts on the markets out in the cold and allows the country to be semi-self-sufficient.

The uses of its earnings may be up for debate, and the morality questioned. But much like Bitcoin cannot be blamed for drug buying, neither can it be blamed for aiding North Korea to accumulate wealth.

Breaking the western hegemony

It has also been reported and discussed how Iran and Venezuela are using their own cryptocurrencies to bypass sanctions implemented by the US. Again, there may be questions of morality and righteousness in this, but those same questions can be posed of the US and their rights to cripple access to the global economy.

There has been long political debates and philosophizing about the way in which the global system has been constructed by the West and how it hampers the growth of other nations that do not follow those norms. Cryptocurrencies at least give a tool that governments can use, that are uncontrollable, to help prop themselves up.

A chance for good

Again, the moral debate could rage forever, but what can not be debated is the other side of things cryptocurrencies can open up in dire situations. Cryptocurrencies always had the moniker of being a tool of the people, and in places where the people have been let down by traditional economies and policies, a burgeoning cryptocurrency market usually springs up.

In Zimbabwe, people have been forced to adopt the US Dollar as their currency has degraded to nothing, but even getting hold of the US Dollar is difficult and puts the country in the pocket of the West again.

However, the African nation, with the help of coins like Dash, are building a functioning digital economy which is helping the people to survive.

views
👓 Recommended articles
🤷 Opinions Cyril Gilson

NEM, Dash and Petro in Venezuela: Head of NEM Latam Explains

Opinions
“We can confirm that the Venezuelan government is intending to use the NEM Blockchain”:Pedro Gutierrez
NEM, Dash and Petro in Venezuela: Head of NEM Latam Explains

Is the Venezuelan government using the NEM platform for its oil-pegged Petro cryptocurrency? Head of NEM Latin America Pedro Gutierrez answers the question in a first-hand exclusive interview.

It’s been reported that the controversial Venezuelan cryptocurrency Petro was officially released as an asset on NEM’s Blockchain rather than on Ethereum’s Blockchain, with the total supply capped at 100 mln Petro.

Pedro Gutierrez answers and explains why the NEM platform, its competition with Ethereum and specifics of doing business in one of the most promising regions on Earth.

We asked Pedro Gutierrez about NEM’s involvement with the Venezuelan government and the platform’s perspectives in Latin America and globally. As the Latam leader of NEM.IO foundation, Gutierrez sees his major task in s publicizing Blockchain technology and NEM in industry, commerce, education institutions and government in Latin America and Spain.

Cyril Gilson: Is the NEM platform used for the oil-pegged Petro cryptocurrency?

Pedro Gutierrez: We can confirm that the Venezuelan government is intending to use the NEM Blockchain. We can’t comment on how it works as it’s not a project we’re actively involved with. The NEM technology is freely open to any individual or organization that wants to use it. The NEM Foundation abstains from political endorsements.

CG: Have the NEM developers been involved in developing the Petro?

PG: No, our developers are not involved with this project. NEM’s technology is easy to use and to build applications upon while having a near perfect record for being secure. A person reasonably skilled can work on the NEM platform within a day.

It does not take much to learn how to use NEM’s technology. So it is therefore easy to imagine why the Venezuelan government wants to implement using NEM technology.

NEM in Venezuela

CG:  How big is the NEM community in Venezuela?

PG: The NEM community in Venezuela is growing steadily. We have raised significant interest in the academic and business sector. NEM is the best technology to make this happen because our platform is plug n play for business- making it the easiest and safest Blockchain network for enterprises and developers.

💼 Related Article
Future of Blockchain Series: Vicky Barker on Mass Adoption
🔥 Hot
4 months 2 weeks
256
Future of Blockchain Series: Vicky Barker on Mass Adoption

CG:  When the story of NEM started in Venezuela and what are the major achievements?

PG:  NEM started in 2014 and its tech is widely adopted by hundreds of companies all over the world because the platform is so easy to use. A huge portion of global industries such as the financial sector, insurance, healthcare, pharmaceuticals, supply chain management and the entertainment industry sectors need a cost-efficient way to manage and authenticate data in an immutable and secure way. There’s no question that these companies will play a vital role in incorporating Blockchain technology in the next few years.

Venezuela is an attractive region for NEM to expand into. NEM has hubs in Malaysia, Australia, Japan and New Zealand. All of the NEM hubs are key to expanding visibility and opportunities where the NEM team can engage with the public, do training on our platform, and support startups who are interested in Blockchain.

In May, we opened an embassy in Venezuela and this is critical to providing Venezuelans with quality resources and training for developers getting into blockchain. We are hopeful that adding Blockchain services to the list of Venezuela industries can help the economy and people. In addition to this, we hold meetups to help educate the Blockchain community on the benefits of building on NEM’s ecosystem.

CG:  Are other Latam governments considering something similar?

PG: NEM is an open-source platform so any government, individual or company can build on NEM. At this time, I’m not aware of other LATAM governments building on the NEM Blockchain.

CG: What advantages and disadvantages of the Petro do you see?

PG: I don’t have a comment on this. I’m working on other projects, though, that I’m happy to talk about. We have some projects that at the moment we can not announce since we have signed NDAs, but I can tell you that they are in the financial sector, in Mexico and Colombia. We are also working on projects of agricultural traceability, electricity for rural areas among others that we will announce very soon.

💼 Related Article
Crypto Art For the Crypto Wealthy: Engaging New Generation of Art Patrons
🔥 Hot
4 months 1 week
256
Crypto Art For the Crypto Wealthy: Engaging New Generation of Art Patrons

Dash and NEM

CG: Is there a competition between Dash and NEM in Venezuela?

PG: Dash is one of the most innovative and interesting Bitcoin forks, but NEM does not compete with Dash since Dash is a transactional platform and NEM is a platform of Blockchain Services. So we are not in competition with Dash because the two platforms are designed for different purposes. We have a good relationship with the DASH team and are supporters of their community, in several countries of LATAM, we have participated in events together.

What’s next

CG:  What's next for NEM in LATAM?

PG:  Education and training are critical to helping ensure the future of Venezuela to remain competitive and thrive. NEM is supporting LATAM by building Blockchain hubs, offering training to developers at all levels, partnering with companies in all industries, and building a strong community to help keep the NEM ecosystem healthy.

One way that we do this is through the $70 mln NEM Community Fund. The NEM Community Fund promotes the development of the NEM ecosystem by having the NEM community vote on funding NEM startup companies.

It’s an alternative to doing an ICO and something that could be beneficial to many people in LATAM.

💼 Related Article
Crypto Trading Legend MasterLuc: “You Can Visit Cemetery of Dead Alts, Won’t Find Bitcoin There”
🔥 Hot
5 months 2 weeks
256
Crypto Trading Legend MasterLuc: “You Can Visit Cemetery of Dead Alts, Won’t Find Bitcoin There”

🤷 Opinions
views
👓 Recommended articles
Darryn Pollock

Can State-Backed Cryptocurrencies Work, Are They the Answer?

Some regulators are going as far as to make their own cryptocurrencies, is this a viable option?
Can State-Backed Cryptocurrencies Work, Are They the Answer?

When Russia firstly banned access to cryptocurrency exchanges and then announced that they would be launching a state-backed cryptocurrency called the Crypto Rubel, most were very suspicious and dubious.

But the trend is growing. Venezuela is ahead in the race of these state-backed coins, having launched a pre-sale of the Petro, an oil-pegged cryptocurrency launched by the government.

Now, even the Turkish government is mulling over perhaps building their own state-backed cryptocurrency as a way to maintain regulation and control over the burgeoning Blockchain and crypto space.

However, is this not an oxymoronic term, a state-backed’ and therefore centralized, cryptocurrency. One of the biggest appeals of cryptocurrencies is that they are decentralized and absent from control, but perhaps to fit in, this needs to change?

The issue with decentralization and centralization

Decentralization, when Bitcoin was still being discussed on cryptography forums with hushed anarchistic and liberal tones, was the shining light of possibility for the cryptocurrency. Financial freedom and the power to cut loose from the monopoly that had been built by central banks and governments.

It is also one of the major factors as to why those same banks and governments have feared Bitcoin, knowing that it has the potential to be a true competitor. However, it must be stated, that there is still a long way to go for Bitcoin or any other coin, to make banks and fiat currency obsolete.

However, cryptocurrencies have emerged from the shadows somewhat in recent times, gaining a huge amount of momentum and mainstream appeal. This has lead to regulators being forced to act and to do their job.

Some regulators are going with a hard-line approach, such as China with its blanket bans, others are curious but want it to fit into current legislation, which is problematic as a decentralized platform is hard to control. But overall, most regulators and nations want to encourage cryptocurrencies and especially Blockchain.

State-backed

In light of this keenness to see Blockchain thrive it is understandable why governments believe that a state-backed coin can be the answer. They are happy to see Blockchain thrive, and as such, cryptocurrencies, and also believe that they can regulate to their standards if they are the ones in charge of the new cryptocurrency.

However, it is good in theory but possibly won’t work. Already, the Petro is getting a lot of pushback and criticism, and now, the Russian Crypto Rubel is being touted as a potential non-starter.

The creation of a centralized coin, like the CryptoRuble, seems impossible, as cryptocurrencies are based on decentralized ledgers, Russian Finance Minister Anton Siluanov told President Putin, according to Russian media.  

Hard to get buy in

Regardless of the need for a balance between the crypto community, which is after decentralization, and the regulators, who need control, the idea of a state-backed coin, a centralized one, is a little too weighted to the regulators.

What is more needed is a positive regulatory body that maintains decentralization, but also holds cryptocurrencies under the legislative blanket of the country

views
👓 Recommended articles