Venezuala

Discussion in 'Digital Currencies' started by REDBACK, Aug 26, 2020.

  1. REDBACK

    REDBACK Well-Known Member Silver Stacker

    Joined:
    Nov 22, 2011
    Messages:
    3,811
    Likes Received:
    732
    Trophy Points:
    113
    Location:
    Melbourne
    Have been following the Venezuelan situation for a while mainly due to the "List of businesses that accept Cryptocurrency's thread" and the DASH link.
    Venezuela is becoming a case study for how decentralisation can benefit and protect individual wealth outside of the control of 3rd parties.


    Some of the articles are structured through corporate eyes and thus have a slant that may not exactly explore the entirety of claims made, be your own investigator.

    Venezuela Blocks Opposition From Disbursing $18 Million To Health Workers via Bitcoin Exchange Airtm

    [​IMG]
    [​IMG]

    Venezuela has blocked the main opposition from distributing $18 million worth of cash previously seized by the U.S. from the Nicolas Maduro government. The money is being dished out via peer-to-peer (P2P) crypto exchange Airtm to 62,000 healthcare workers starting Monday.

    However, it is not yet clear whether the money at the center of the dispute will be disbursed in cash or bitcoin (BTC). Workers will reportedly be paid $300 each over three months in equal installments.

    The U.S selected the Juan Guaido-led opposition party to facilitate the distribution. Guaido is recognized by several countries as Venezuela’s legitimate president due to his position as speaker of parliament. In a recent press announcement, Guaido acknowledged Airtm’s ongoing efforts to make the money available to the intended beneficiaries.

    Matt Ahlborg, the creator of crypto analytics firm Useful Tulips, reported on Guaido’s plans to airdrop censorship-resistant digital dollars to the workers through Airtm in a thread on Twitter.

    Airtm operates a P2P exchange from Mexico City where its primarily Venezuelan users have logged in to trade Bolivars and bitcoin “for digital US dollars for years”, according to Ahlborg. Venezuela accounts for 65% of Airtm users. He said:

    As a result of this redistribution campaign, the Maduro government yesterday (Aug. 20) blocked access to Airtm from inside of Venezuela. However, just as quickly, Venezuelan activists were creating educational resources on how to access Airtm despite the block.

    The U.S does not recognize Maduro’s government following a disputed 2018 election. Cryptocurrencies have a heavy role from both ends of the diplomatic stand-off, initially taking the form of Maduro’s sanction-busting Petro and now, the U.S.’ latest intervention through a bitcoin-aligned company.

    BEATING THE SYSTEM
    According to Airtm, access to its website is restricted through internet service providers such Cantv, Movistar, Digitel, Supercable, and Movilnet. In a blog post, the Coinbase-funded exchange provided expected beneficiaries with a VPN primer. The post also details Airtm’s history of censorship under the Maduro government.

    Last week, the country’s Superintendency of Institutions of the Banking Sector of Venezuela (Sudeban) said Airtm’s “unusual operations” fall outside regulations and would be related to money laundering and terrorist financing in terms of Venezuelan law.
    In a joint statement with the Financial Intelligence Unit (Unif), Subedan urged banks to exhaustively monitor such operations and guarantee the transparency of transactions.

    Unif called on banks to report intermediaries “who lend themselves to transactions with this type of platform” but did not spell out measures to be taken against them. Airtm relies on intermediaries to facilitate the exchange of funds.

    Ahlborg noted that the developing story highlights “a new era of geopolitical brinkmanship as certain countries make available their own currencies and financial infrastructure to the citizens of other countries en masse.”

    Britain recently seized $1 billion worth of Venezuelan gold and maintained sanctions on Maduro’s regime.
     
    JulieW likes this.
  2. REDBACK

    REDBACK Well-Known Member Silver Stacker

    Joined:
    Nov 22, 2011
    Messages:
    3,811
    Likes Received:
    732
    Trophy Points:
    113
    Location:
    Melbourne
    For reference the population of Venezuala in 2018 was over 28million

    Dash sees 562% increase in active wallet users in Venezuela

    Dash usage in Venezuela continues to see exorbitant growth as its wallet app for Android devices registers a 562% increase

    Christina Comben (Christina is a fintech and cryptocurrency writer with a passion for technology. She draws on her years of experience as a business reporter and interviewer to bring you the most salient issues and latest developments in the crypto-sphere.)
    January 23, 2020



    Besides Bitcoin and the Petro, another cryptocurrency is making serious inroads in Venezuela.

    Dash usage in the ravaged South American country is on the rise, registering a 562% increase in active wallet users.

    Dash usage in Venezuela rises
    Dash director of media and PR Mark Mason posted on Twitter that, from May to December 2019, there had been a 562% increase in active Andriod devices using the Dash wallet app in Venezuela.



    He also pointed out that this figure did not represent total installs, but actual devices. Moreover, growth for December 2019 was 29%.

    This prompted one follower to point out that, at the current growth rate, it will take just 12 more months to crack the 1 million mark in Venezuela.

    Coin Rivet has previously reported on the increase of Dash usage in Venezuela. Currently, more than 2,500 merchants in the country accept payment in Dash.

    These include small cafes and grocery stores and large merchants and international brands such as Calvin Klein, Church’s Chicken, and Burger King.

    Dash Text also allows people who don’t have smartphones to send and receive the cryptocurrency by SMS. Cell phone penetration is extremely high in Venezuala, with around 85% of the population owning a mobile phone.

    However, with sweeping blackouts and frequent internet issues, smartphones are not always a viable option. By allowing for payment with a simple text, transactions can be made regardless of internet connection and from any type of mobile phone.
     
  3. REDBACK

    REDBACK Well-Known Member Silver Stacker

    Joined:
    Nov 22, 2011
    Messages:
    3,811
    Likes Received:
    732
    Trophy Points:
    113
    Location:
    Melbourne

    Why Venezuela's Cryptocurrency, Petro, Is A Failure

    By RAKESH SHARMA
    Updated Sep 7, 2018


    Among countries with troubled economies, Venezuela is a special case. Thanks to its oil reserves, the South American nation was among the richest in the region. But bad policies have resulted in its economy spiraling into a vortex of hyperinflation, poverty, and widespread unemployment. To make matters worse, US sanctions have further fueled its economic crisis.

    Earlier this year, Venezuela unveiled a national cryptocurrencythe petro to circumvent those sanctions. The idea was to enable transactions in currencies other than the US dollar. In a televised address to announce the petro’s launch, the country’s president, Nicolas Maduro, portrayed Venezuela as an underdog engaged in a fight with a superpower. “Today a cryptocurrency is born which can take on Superman,” he proclaimed.

    But a recent Reuters report claims that the cryptocurrency is yet to take off, much less compete with the American Superman. The publication investigated the coin and found little evidence that it was being used in mainstream society. What’s more, there’s reason to believe that the blockchain underlying the petro is still under development.

    There is also reason to doubt the government’s claims of raising capital through the sale of the cryptocurrency’s tokens. President Maduro had earlier said that the cryptocurrency’s tokens had already raised $735 million in a presale round. Later estimates put the token sale amount at $3.3 billion. (See also: Venezuela Claims To Have Pre-Sold $735 Million Of Cryptocurrency).

    Reuters scoured the NEM blockchain, which was used for the initial round, for addresses and their petro holding amounts. The publication calculates that a token sale of 13 million petros has netted approximately $850 million for the authorities. But there is a caveat to this calculation. “...there is no way to verify that those were sales, and no large investors have admitted to taking a position in the petro,” the report states.


    Last month, President Maduro devalued Venezuela’s fiat currency by 96 percent and linked its price to that of the petro. “They’ve dollarized our prices. I am petrolizing salaries and petrolizing prices…We are going to convert the petro into the reference that pegs the entire economy’s movements,” he said.


    But there are two problems with Maduro’s approach. First, the petro itself does not have any value since it is not traded on any cryptocurrency exchanges, according to the Reuters investigation. An official from Bitfinex, one of the world’s biggest cryptocurrency exchanges, told Reuters that the petro had “limited” utility. Second, the petro, as it was conceptualized, may not exist at all. The Reuters report quotes Hugbel Roa, who is responsible for the Venezuelan Blockchain Observatory, as saying that people have made “reservations” for the petro but no coins have been “released” yet.

    When it was launched, the petro was seen as a way out of US economic sanctions on Venezuela. However, subsequent developments have revealed that the cryptocurrency is still to gain mainstream with international traction.





    ...........................................................................................
    Maduro bids to revive Venezuela's 'petro' cryptocurrency

    Issued on: 15/01/2020 - 00:00Modified: 14/01/2020 - 23:59

    Caracas (AFP)

    President Nicolas Maduro on Tuesday decreed that airlines flying from Caracas must pay for fuel in Venezuela's ailing "petro" cryptocurrency, which he ordered to be more widely used in the cash-strapped South American country.

    Maduro used his annual speech to the ruling Constituent Assembly to try to revive the controversial petro that has been banned by the United States and labeled a "scam" by some risk rating bodies.

    "I decree the sale of all fuel sold by the PDVSA for planes operating international routes be made in petros from now on," the socialist leader told the all-powerful Assembly, created by Maduro himself to sideline the opposition-controlled National Assembly.


    Maduro also decreed the mandatory use of the petro to pay for state document services including passports.

    Backed by Venezuela's vast oil reserves, the petro was introduced in 2018 as a way to circumvent wide-ranging US sanctions and overcome chronic liquidity shortages.

    Maduro wants the virtual currency to become a widely used means of payment by Venezuelans, yet most people have no idea how to use it.

    Risk rating websites such as icoindex.com describe the petro as a "scam."

    But while the petro has failed to win investor confidence, other cryptocurrencies have proved hugely popular in Venezuela as a refuge against hyperinflation.

    Maduro last December approved bonuses in petros for public employees and pensioners. However, experts said the petros were quickly changed back to bolivars and then to other currencies.

    The government last week blocked the exchange of petros for bolivars.

    Maduro did not specify whether the fuel payment measures introduced at Caracas airport concerned Venezuelan companies alone or if they extended to international carriers.

    International links to Venezuela have been severely restricted since the beginning of a crippling economic crisis seven years ago.

    The capital's Maiquetia Airport is still serviced by Air France, Iberia, Portugal's TAP, Air Europa and Panama's Copa Airlines.

    But there are no longer direct flights to the United States, due to sanctions imposed by Washington aimed at removing the socialist leader from power.

    Caracas owes $3.8 billion to international carriers, according to the International Air Transport Association IATA.
     
    Last edited: Aug 27, 2020
  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    20,464
    Likes Received:
    3,546
    Trophy Points:
    113
    Location:
    昆士蘭
    Lol, if no one wanted the Bolivar what makes him think they'll want his petros?
     
  5. inmizu

    inmizu Active Member

    Joined:
    Jul 4, 2018
    Messages:
    155
    Likes Received:
    105
    Trophy Points:
    43
    My outfit ran an extensive project with some Venezuelans. Rather than just give them cryptos, we taught them to trade (and a part of the experiment was using a crypto that had transaction comments, which allows amazing stuff: encoded addresses and messages.)
    We learned a lot -- and have undertaken p2p projects like this before. Tested their trust. Went nuts doing the whole thing through Google translator 'cause we don't speak Spanish.

    Ultimately, we lost contact with our guys when the situation became really crazy. They had intermittent power and Net, and other major problems to deal with. I still check Reddit every morning, hoping there's a message from them.

    [Nah. They didn't take our money and bolt. We worked with these guys for months and months and months.]
     
    REDBACK likes this.
  6. REDBACK

    REDBACK Well-Known Member Silver Stacker

    Joined:
    Nov 22, 2011
    Messages:
    3,811
    Likes Received:
    732
    Trophy Points:
    113
    Location:
    Melbourne
    [Nah. They didn't take our money and bolt. We worked with these guys for months and months and months.]


    Had same experience in the highlands of PNG with local tribal people.Some of the most honest people I have had the pleasure in dealing with.
    You could trust them with your lives and we did.
     

Share This Page