How Venezuelans use stablecoins every day to protect their livelihoods
last month, Cointelegraph interviewed Reserve CEO Nevin Freeman And Yens Michiels, community manager for payment decentralized applications, on the company’s mission to provide stable currency access. Recently, Cointelegraph interviewed several users from Venezuela and Colombia, and they shared their positive experiences with Reserve.
Reserve is a tool that converts legal currencies such as Venezuelan bolivars into U.S. dollars through reserves (RSV) Stablecoin. From daily shopping to home remittances, Reserve says its use cases in Latin America are increasing. One year after listing in Venezuela, Colombia, Panama and Argentina, Yes More than 100,000 app visitors and more than 8,000 merchants accept it as a payment method every week.
Sasha Antunez and Alicia Stephany, two Reserve customers, expressed their views on the role of the application in daily life and the economic situation in Venezuela. Antunez is a neurologist living in Maracay, Venezuela. He calls himself a “reserve ranger”. He uses Reserve at home and at work. Stephany is a Venezuelan living in Bogotá, Colombia. She uses Reserve to support her family who still live in Venezuela.
Antunez explained how she uses Reserve to pay for daily expenses:
“I saved my reserve in the app. Suppose I have to go to the supermarket and I have about $20. I exchange so that I have bolivars in my bank account and can pay for all the supermarket expenses. But I also Knowing that I can turn my bolivar into reserve dollars and then into USDT.”
Most customers use it to save money. If they get paid in local currency, they don’t have to worry about the depreciation of the dollar. If they need to buy something in local currency, as stated by Antunez, if the merchant accepts it, they can convert it back at any time or directly use the RSV stable currency to pay. Most people don’t even realize that it has something to do with cryptocurrencies such as Stephany.
“Venezuelan bolivars deserve to be degraded so quickly that if you have bolivars, you need to change them as soon as possible to protect them,” she explained, adding that if she is in Colombia and her father is in Venezuela, but ” I need to pay for his things, and then instead of just exchanging what I need in the supermarket, I was always looking for someone to buy me extra dollars. So, I persuaded people in supermarkets and pharmacies to download Reserve.”
government introduce The currency was revalued in October, which is the third time since 2008 to simplify calculations. However, the economy has been increasingly informally dollarized. This means that prices in stores are in U.S. dollars, corresponding to black market exchange rates rather than official exchange rates, because more and more merchants use PayPal, Zelle or now Reserve. With Reserve, users can exchange currencies at an exchange rate closer to that of the central bank.
Combining this volatility with hyperinflation, citizens’ distrust of the government and the banking system is bound to surge. When asked about the prospects of Venezuela’s economic improvement, Antunes said:
“I believe that technology will play an important role, because encrypted currency allows everyone to achieve financial freedom and free access. This is how we need to solve this situation by providing people with tools to protect their funds. Here, We don’t have any solutions, at least not now. And I don’t see things get better. At the same time, we just want to protect the meager income we make from work.”
At the time of publication, the project’s iPhone application used to be The most downloaded financial app in the Venezuelan app store. Two other cryptocurrency trading apps, Binance and MetaMask, also made the top 10.