The developers of Reserve, an Oakland, California-based stablecoin project, are reportedly planning to launch an app which will allow users to convert cryptocurrencies to fiat money.
According to Reserve’s management, the new app will be released in Angola and Venezuela. In addition, the company will be introducing a utility token, called Reserve Rights (RSR), which can be purchased from Huobi Prime’s token sale platform.
Reserve Dollar, Pegged 1-to-1 With USD
As noted in a press release shared with Cointelegraph, Reserve’s latest stablecoin app will be available on Google Play for Android users in the “coming weeks.” The app’s users will be able to make quick conversions between fiat currencies to Reserve’s stablecoin, the Reserve Dollar (RSD). Reserve’s developers claim that RSD is decentralized and pegged 1-to-1 with the USD.
Commenting on the launch of the new stablecoin app, Nevin Freeman, the co-founder and CEO of Reserve, revealed that his firm intends to focus on helping the citizens of areas affected by extreme levels of inflation (or hyperinflation).
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.
Bolivar Losing 10% Of Its Value Every Day
Notably, there are at least 16 countries that have an annual inflation rate of more than 20%. The situation in Venezuela appears to be with worst, as the nation’s national currency, the Bolivar, has been losing almost 10% of its value every day.
Due to political and economic instability, Venezuela’s residents have increasingly been using cryptocurrencies, including Bitcoin (BTC) and Dash (DASH). However, a recent report suggests that cryptocurrencies are too technical for most Venezuelans.
Open Money Initiative Helping Nations In “Closed Economies”
Alejandro Machado, the co-founder of the Open Money Initiative (OMI), a project focused on researching how money is “used in closed economies” and “collapsing monetary systems,” recently revealed that Venezuelans have not completely abandoned the Bolivar.
Machado acknowledged that nobody wants the Bolivar, however they “need it to survive.” In order to help Venezuela’s residents gain access to financial services, Machado’s non-profit organization, OMI is working with globally accessible peer-to-peer (P2P) crypto exchange LocalBitcoins on various projects.
BTC Trading Reaches All-Time High
Available data has confirmed that Venezuela’s residents have increasingly been using cryptocurrencies, particularly Bitcoin. In fact, data from Coin.Dance, a website that tracks trading activity on major bitcoin marketplaces including Paxful, Bisq, and LocalBitcoins, revealed recently that bitcoin trading volume in Venezuela reached an all-time high of 35.9 billion Bolivars.
The previous high was 29 billion Bolivars in total bitcoin trading volume, which was recorded towards the end of April 2019.