Crypto asset Dash is witnessing a surge of interest from residents in Venezuela as people turn to cryptocurrencies as a way of storing value amid the country’s hyperinflation.
Venezuela is Dash’s Number Two Market
Venezuela’s monetary system is continuing its turbulent ride. With inflation projected to reach as much as 1,000,000 percent this year, residents are turning to alternative solutions.
The country’s president, Nicolás Maduro, has introduced the state-backed cryptocurrency, the Petro, as a way of mitigating the crisis. However, another altcoin is seeing heightened interest as residents come to terms with the nation’s money issues.
That crypto asset is Dash. In an interview with Business Insider, Ryan Taylor, CEO of the Dash Core Group, explained that it was seeing tens of thousands of wallet downloads from the country each month:
Earlier this year, Venezuela became our number two market even ahead of China and Russia, which are of course huge into cryptocurrency right now.
Additionally, the 14th-placed altcoin is experiencing strong adoption among merchants too. Taylor said that the number of merchants was around 400 in July before rising to 800 in August.
Some of these merchants in Venezuela include Calvin Klein and Subway. Yet, while Venezuela is often noted for its high inflation, Taylor points out that there are other countries where this exists. For instance, Turkey, Ukraine, and Argentina.
Taylor notes:
These are countries with very high inflation rates with 20-30% or something. 20-30% we think is enough to get people to try something new.
Venezuela’s Petro
Launched in February, the Petro was designed to supplement the country’s bolívar. It was also created to overcome U.S. sanctions.
Last week, Maduro announced a series of measures aimed at preventing the country’s economy from collapsing. These included the devaluation of the bolívar by 95 percent and pegging it to the Petro. As reported by Bloomberg, the new currency, the “sovereign bolívar’s” new value is believed to be the first time a government has employed the technique of linking a crypto asset to a fiat currency.
While it hasn’t received the best press coverage, the country’s president is attempting to use it for good. Last month, Maduro approved the use of 75 billion bolívares and 909,000 Petros to finance the building of houses in the country. How this will impact the build remains to be seen, given the new currency value in the country.
Do you think that cryptocurrencies like Dash and Bitcoin are the answer to the current monetary crisis in Venezuela? Let us know in the comments below.
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