With Venezuela facing a hyper-inflation that is making its fiat currency volatile and spiral out of control, there is a lot of confusion prevalent among the people. Over the weekend, the President Nicolas Maduro, devalued the Venezuelan Bolivar by 95%. Meaning, now to buy basic food supplies, the people of Venezuela require stacks and stacks of money.
The country is facing the worst hyperinflation a nation has ever seen and it is only going to get worse. The country is forecasted to see a 1,000,000% inflation over the rest of this year and the beginning of 2019. The actual inflation that has played out right now over the weekend and the forecast of more to come has left the country paralysed and in a state of utter confusion.
Now with their fiat currency being so volatile and unstable, the Venezuelan locals are looking for other options.
President Nicolas Maduro has devalued the Venezuelan Bolivar by 95% over the last week and had proposed to peg its value to the country’s state-backed cryptocurrency; Petro. The Petro was developed and launched in Venezuela as a method to circumvent the US sanctions on the country and went on to become the first state-backed, fiat-backed cryptocurrency.
The Petro coin was released in February of this year as a step against the inflation the country was already facing then and as a new way to offer financial stability to the people of Venezuela.
In the cryptocurrency market, Petro did not fare so well. A large chunk of the community, exchanges and market influencers boycotted Petro completely. In the cryptocurrency market, having community backing is essential, but for humanitarian reasons and general distaste among people for the President the coin was boycotted.
With the hyperinflation and the constant changing of rules and regulations, the people of the country are turning to cryptocurrencies for more stability and safer storage. As the hyperinflation has left the country paralysed, the country’s people have turned to the world’s 14th largest cryptocurrency; Dash, for convenience and comfort.
Over the last five months, the country has seen a lot of widespread adoption of cryptocurrency among merchants and general food stores. And the most popular cryptocurrency at the moment is the Dash Core Group’s Dash.
An official of the company recently revealed that almost 200 merchants start accepting Dash as currency in Venezuela every month. The adoption started four months ago and right now almost 800 merchants in the country accept Dash in exchange for goods.
Big international brands in the country have also begun accepting Dash as the money they swipe on credit cards and debit cards become pretty much worthless by the time the money hits their accounts. Brands like Subway, Calvin Klein are heading this drive.
The cryptocurrency market is able to provide the people of Venezuela the stability that their fiat currency right now and with more inflation in store for the country, they are all turning to Dash.
Over the past year, Dash has pumped $1 million into the Venezuelan market towards their marketing in the country and have really benefited from the hyperinflation of the country and the people’s need for an alternative.
The cryptocurrency Dash itself has just over $1 billion coins in circulations and is the world’s 14th largest cryptocurrency. The company is at the moment at about 800 merchants and expect to hit 1000 by the end of the year.
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