Venezuela has been going through a period of deep economic recession over the past few years. The nation’s official currency, Bolivar, has been sinking so much due to inflation that it is in all forms considered useless. The situation has forced the working class as well as the wealthy, to seek out new ways to safeguard their savings from cyclical inflation and currency controls. Cryptocurrency Dash had entered the market only in 2016 but has quickly established themselves as an affordable alternative to Bolivar.
The digital currencies offer the Venezuelan people a valid substitute for the national currency. They allow the economically weak citizens to get around the regulatory guidelines of the central banks, which have been denying them access to essential financial services like digital payments, money transfers, consumer lending, and individual investing. Cryptocurrency and the Digital wallets allow them to participate in the myriad of digital services available, from consumer loans to secure peer-to-peer payments.
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Dash CEO Ryan Taylor and his team had spent considerable time educating the people about why Dash is an ideal payment option. During the bear market of 2018, Dash experienced a rapid adoption among the local merchants.
Taylor noted:
“While the merchants adopted dash because it is a valuable currency, that’s not the only attraction. We have discovered that there are other problems with the Venezuelan payment system. As the payment infrastructure goes down, unrealistic transfer limits are set. The number has become so low that something as cheap as having dinner with your friends will wipe it out. People who want to make large transactions have to look for five family members or friends to jointly pay for it. This is why something cash-like presented the perfect solution without any restrictions.”
Venezuela witnessed a 1000 percent rise in cryptocurrency transactions in 2017 due to the ongoing economic crisis. In fact, the South American Nation is rapidly becoming the first country to replace traditional fiat currency with a digital one. Recently, Venezuela’s government had launched the Petro, its cryptocurrency backed by oil. Though the president Maduro has been widely criticized for the move as many see it as an elaborate bid to evade sanctions imposed by the US.
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Dash is an open source cryptocurrency created in 2014. It has low fees and near-instant transactions. Dash is currently the 14th largest cryptocurrency in the world, according to CoinMarketCap.com, with just over $1 billion-worth in circulation. Dash just happened to be the very first cryptocurrency to take advantage of the grim situation in Venezuela. From a Bolivar hedge, the cryptocurrency now has become the tool for survival for people in the economically ravaged nation.
