⭐ Features

If Venezuela and Iran Can, Why Aren’t More Countries Creating Cryptocurrencies?

  • Darryn Pollock
    ⭐ Features

    A few countries have looked to form their own cryptocurrencies to fight off things like inflation and sanctions, but why aren’t they all considering it?

If Venezuela and Iran Can, Why Aren’t More Countries Creating Cryptocurrencies?
Cover image via u.today

Cryptocurrencies have met a quandary where they stand currently, they have emerged from the dark web and been embraced and understood by mainstream society, yet their adoption is still slow.

Regulation, misunderstanding and a labored sentiment has stopped the spread of cryptocurrencies to ordinary citizens as they remain the playthings for enthusiasts and investors.

However, Blockchain, the underlying technology, is being roundly praised with all sorts of institutionalized and traditional sectors exploring its uses. Governments have not been shy to try and incorporate Blockchain, but they are still skeptical of cryptocurrency.

However, some countries are looking at Blockchain, and cryptocurrencies, as a way to defeat certain ends- creating their own government-back coins- this is happening in Venezuela, as well as soon to be in Iran. The reasons are to fight hyperinflation in the South American country and to avoid sanctions in the Middle East.

However, the use of cryptocurrencies can aid countries even where there are no direct financial or economic issues, so why are more countries not using them?

The oil-backed Petro

The Petro in Venezuela has been met with a lot of cynicism for its use to firstly avoid sanctions from the US, but also because people have noted that it could be used as a tool by Nicolas Maduro to inflate his pockets in a time where the Bolivar is inflated beyond use.

However, the Petro could be a functional and useful cryptocurrency for the people of Venezuela who are in a position where an economic collapse is on their doorstep. By pegging the price of the coin to a barrel of oil, they could be offered stability and ease of use through a digital token.

Iran’s almost-cryptocurrency

In response to more US sanctions, Iran has started preparing its Rial-backed cryptocurrency. However, instead of being decentralized in the normal sense. It is issued in compliance with a mathematical formula, but Iran’s digital Rial is released based on the decision of their central bank. That said, Iranian digital currency cannot be mined, and its transaction records can only be accessed on a private Blockchain.

Still, if rolled out correctly, and made available openly and fairly to its people, the digital Rial could not only help avoid sanctions but could leapfrog the Middle Eastern country forward as its citizens fully enter the digital currency revolution, despite the government being in control.

Dashing into the struggling countries

Venezuela may have the Petro, but it also has skepticism from its people. Thus, digital currency Dash is working hard in establishing itself in the South American country, as well as in Zimbabwe, another country with economic issues.

However, the issue with implementing decentralized coins that are well known in countries with an established government is that they will not be open to having no control or sanction over a major financial aspect of their economy.

Chance to grow

It would be interesting to see what countries with stable economies think of the benefits of a digital currency, even if it is a government-issued one. Many will feel that there is no point in a government-backed crypto, saying it is not a true cryptocurrency, but it does offer many benefits.

Not only are the benefits open for their citizens, it would take away the privatization of a lot of companies like Visa and Mastercard, and allow the government a new revenue stream on which to tax, while still aiding things like cross-border payments.

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About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.

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📰 News

XRP Currently Bringing 80% of Total Trading Volume on Ripple-Funded Bitso Exchange

  • Yuri Molchan
    📰 News

    A major XRP community member shares data that XRP is generating 80% of volume on Bitso exchange that is Ripple’s partner at introducing On-Demand Liquidity in Mexico

 XRP Currently Bringing 80% of Total Trading Volume on Ripple-Funded Bitso Exchange
Cover image via www.123rf.com

After Ripple had rebranded its xRapid product as On-Demand Liquidity (ODL) and partnered with the largest Mexican exchange Bitso, the introduction of ODL in cooperation with MoneyGram starts bringing its first fruits. As part of the collaboration, Ripple has invested in Bitso and got them to add one of its top executives to the board of directors.


On-Demand Liquidity successfully integrated on Bitso

A member of the XRP community @XrpCenter reports that things are looking good for XRP on the largest Mexican exchange Bitso and for Ripple’s ODL product. ODL was introduced there after the crypto giant invested an undisclosed amount in the trading platform.

The chart in the tweet shows that the XRP/MXN pair now accounts for 80 percent of the overall trading volume of Bitso.

Bitso became the key partner of Ripple and MoneyGram at introducing On-Demand Liquidity to the Mexican market. So far, the implementation has been going successfully.

This has not impacted the XRP price much though, since over the last 24 hours it rose merely by 0.54 percent. Unlike it, BTC and its forks – BCH and BSV – have posted much higher gains, as reported by U.Today earlier.

XRP price
Image via Coinmarketcap


Ripple Dispels XRP FUD Allegations, Q3 Report Blames Twitter Bots

Ripple Dispels XRP FUD Allegations, Q3 Report Blames Twitter Bots

Ripple releases its Q3 report

At the end of last week, Friday, Ripple issued its regular report on the results of Q3. In the document, Ripple covered several major issues, such as movements of XRP from escrow and back to it, recent Ripple’s partnerships with Logos, Algrim and other startups, Coinme crypto ATM network.

Ripple also addressed the issues of FUD (fear, uncertainty, doubt) that has been recently actively spreading around the company and its XRP asset.

Ripple Q3 report
Image via www.ripple.com

What are your thoughts on the Ripple expanding XRP use in Mexico? Share them in the comments section below!

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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