If there’s something we can all agree on is how cryptocurrencies are helping people in countries where inflation is killing the value of the local currency. DASH was perhaps one of the first projects to target Venezuela has one of its primary markets, mainly due to the incredible inflation rate and financial crisis the country is currently experiencing. Just a couple of months back, the National Assembly published the accumulated inflation rate, quoting it at 2.295,981,8% when compared to the same date but 12 months before the study. This, combined with a deep political and economic crisis, has caused for the value of the local currency to be practically worthless, forcing people to choose alternatives such as cryptos to safeguard the value of their money.
Coinbase is now also targeting the Latin American country, announcing the launching of a crypto-fiat payment app in Venezuela and Angola. The app will use Coinbase utility token, Reserve Dollar (RSD), to enable people to exchange fiat currency for cryptos and back at any given moment. The Reserve Dollar (RSD) is Coinbase stablecoin, a decentralized dollar-pegged cryptocurrency.
According to Nevin Freeman, co-founder and CEO of Reserve, the reason why the app is launching in Venezuela in just a matter of weeks is due to the extreme inflation rates the country is experiencing, saying:
A lot of people, including some of our investors, discouraged us from starting in Venezuela. [..] The hyperinflation there is the exact problem that Reserve is built to fix, and Venezuela is suffering the most inflation of anywhere in the world right now, so we felt that it had to be done.
This particular project could help millions of Venezuelans that are currently going through one of the most difficult times of their lives, with over 4 million citizens fleeing the country due to the crisis, searching for a better life elsewhere. Coinbase stablecoin represents a legit option for Venezuelans to safeguard the value of their money and exchange it just when necessary, shielding it against inflation. Let’s not forget that Maduro’s regime launched its own cryptocurrency, the Petro, allegedly backed by oil reserves, but it lacks legitimacy given that is the own government that sets the price and is not really backed by reserves, just used as a way to remain in power.