No Faith in the Bolivar
Venezuela is in the tight grip of an economic crisis. With inflation tipped to hit 1,000,000% by the end of 2018, the fiat currency is unusable. In fact, there reports that Venezuelans need an amount of notes heavier than a tissue paper to buy one. By mid July, inflation was at 83,000%.
According to the BBC, the government is initiating various strategies to stabilize the economy. However, people’s faith in the currency (bolivar) is at rock bottom. For this reason, Venezuelans started converting their assets into commodities to salvage the little they had remaining. But there are just not enough commodities to buy. As a result, many Venezuelans began converting their assets into digital currency. At the time, and even today, the government recommends the Petro. However, the official cryptocurrency is barely in circulation. There are negligible reports of people using the token. Eventually, Venezuelans settled on Dash.
As the Business Insider reports, Dash is one of the many altcoins that came in the wake of Bitcoin. According to CoinMarketCap.com, the digital token has a market circulation of a little above $1 billion. Users state that transactions in Dash are cheap and faster. Most importantly, the digital coin supports optimum privacy features as one can make transactions in Dash while remaining absolutely anonymous.
Ryan Taylor, CEO of Dash Core Group, creator of Dash, says the token is seeing wider adoption and the highest traffic is coming from Venezuela. He says: “Venezuela became our number two market even ahead of China and Russia, which are of course huge into cryptocurrency right now.”
Dash Gains Commercial Adoption
Interestingly, major brand names in Venezuela are accepting the cryptocurrency. The team at Dash believes the high uptake is due to stability of the cryptocurrency. However, the most important factor involves the speed of transaction and optimized privacy tools.
The romance between Dash and Venezuela is now a level up. In a recent press release, Dash reveals that now Venezuelans can make transactions using text messages. As a result, a new company is in existence. Dubbed Dash Text, the company will facilitate SMS-based Dash transactions across the country. However, the company details that the service is in beta version as it awaits full rollout. In addition, only users subscribing to Movistar can access the service at the moment. Basically, a subscriber sends a five-digit shortcode on Movistar’s network to make a transaction. According to the news release, the aim is to help the hyperinflation-stricken citizens access goods and services.
According to CryptoCoin reporter, Venezuela had its own cryptocurrency which is not performing well. The Petro is barely active in trades over cryptocurrency exchanges. In fact, analysts say that this may be the reason Dash is popular. Maybe common Venezuelans thought the government’s coin would collapse the way the bolivar is going. Therefore, in search for better security, many have gone for Dash. In addition, Dash offers the best services so far in the country. Even in a crisis, who doesn’t mind a little convenience?