Startup Reserve, developing its own stablecoin, is going to launch in Venezuela and Angola an app for exchanging cryptocurrency on fiat money. Investment platform got to know about this.
The application will be available for owner of Android OS based devices and it must appear on Google Play in the nearest time.
With its help users will be able to do exchange of fiat money on RSD stablecoin, which is bound in the ratio of 1:1 to US dollar.
As they claim in Reserve, RSD coin represents the alternative to cash. It has relatively stable purchasing power, it’s characterized by high speed and low transaction fee. And, what is important, it “isn`t suitable for criminal use”.
Note, previous year in the startup invested more than 40 investors, among whom is well-known businessman and hedge fund manager Peter Thiel, Coinbase, Distributed Global and GSR.IO.
Venezuelan Bolivar Suffers from Extreme Inflation
The choice of Venezuela as the first country for the app launching, the Reserve project CEO Nevin Freeman explained by the rapid depreciation of the national currency.
“Many people, including our investors, dissuaded us from running in Venezuela. Hyperinflation is exactly that problem, which Reserve is called upon to solve. And now inflation rates in Venezuela are the highest in the world, so we have decided that this step must be made”.
In the press release it’s also informed, that now there are 16 countries in the world with annual inflation exceeding 20%. However, the situation in Venezuela is really alarming, because Venezuelan Bolivar every day loses 10% of its value.
At the background of rapid devaluation of the Bolivar, last year in the country cryptocurrency demand increased greatly. Local citizens buy bitcoins through LocalBitcoins p2p platform. Against this background, trading volumes on the platform reached record highs several times.
In such a way, in February Venezuelans exchanged 17,1 milliard bolivars on bitcoins for a week only.
It’s interesting that citizens of Venezuela think up new alternative ways of interaction with cryptocurrencies. So, in March during a mass power outage Venezuelans sent each other cryptocurrency by SMS.