Coinbase-Backed Stablecoin Startup Reserve to Launch ‘Venmo Style App’ in Venezuela
Stablecoin project Reserve discloses its plans to launch a crypto-fiat payments app in Venezuela and Angola. The firm further revealed the release of a separate utility token, Reserve Rights (RSR), on major exchange Huobi Global’s token sale platform, Houbi Prime.
As per the report on Cointelegraph on May 12, the press release states that the stablecoin app will be launched for Android users via Google Play “in the coming weeks”. The app will allow people and businesses to switch back and forth from their local fiat currency to the firm’s stablecoin, the Reserve Dollar (RSD), a decentralized United States dollar-pegged cryptocurrency.
Venezuela and Angola
Nevin Freeman, co-founder, and CEO of Reserve cited the reason for the launch in Venezuela as the extreme level of inflation in the country. He noted while talking to the publication:
“A lot of people, including some of our investors, discouraged us from starting in Venezuela. [..] The hyperinflation there is the exact problem that Reserve is built to fix, and Venezuela is suffering the most inflation of anywhere in the world right now, so we felt that it had to be done.”
The press release claims that 16 countries have inflation greater than 20% currently, but with the Venezuelan bolivar losing nearly 10% of its value every day, the situation in Venezuela is particularly troubling. Reportedly, the country’s currency crisis has increased the use of bitcoin (BTC) and other cryptocurrencies in the region. In December, dash (DASH) celebrated the 2,500th merchant in Venezuela to accept the coin as payment.
As for Angola, Reserve reportedly landed a partnership with 7Mobile Africa, the largest mobile importer in the country to pre-load the app on all its shipped smartphones.
Last year in June, the firm received backing from Coinbase, major venture capital names, such as Peter Thiel, Sam Altman, Digital Currency Group, Arrington XRP Capital, Distributed Global and GSR.IO, among others.
Currently the world’s 9th largest crypto exchange by adjusted daily trade volumes, Huobi observes over $2 billion in trades on the day to press time.
The Venezuelan government introduced crypto remittances regulations in the country during February. As per the new requirements, the state has set out monthly limits and commissions, payable to the National Superintendency of Crypto Assets and Related Activities, on cryptocurrency remittances.
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