Reserve Stablecoin App 'Coming Soon' to Help Areas Affected by High Inflation Rates

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).

Freeman remarked: 

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.

Institutional Derivatives Volumes Went Cold After Crypto Market Crash: CryptoCompare

  • Institutional derivatives trading plummeted following March's crypto market crash according to latest CryptoComapre report. 
  • Mar. 13 generated the highest daily volumes in cryptocurrency history, generating $75.9bn in trades. 

Volume trading on institutional derivatives plummeted following the crypto market crash in March. 

According to the  CryptoCompare March 2020 Exchange Review, institutional derivatives volumes tanked following the market crash on Mar. 12, which saw the price of bitcoin drop as low as $3,800. Trading volume across institutional exchanges, including CME, declined more than 43% in March compared to the month before. 

According to the report, 

Institutional appetite for derivatives products appeared to decline rapidly following the BTC crash, with CME losing 44% of volume compared to February. Trading volumes totalled $7.36bn in March compared to $13.1bn in February.

cryptocompare march 2020 guideVolume trading across crypto exchanges in March 2020 | Source: CryptoCompare

The report found that CME options trading, which launched in January of this year, have not seen significant improvements in volume and are far from generating the activity seen on rival crypto exchange Deribit. 

Despite the market crash, Mar 13. brought about the highest daily volumes in cryptocurrency history, generating $75.9bn in trades. Lower Tier exchanges accounted for the majority of the volume at $54.3bn, while Top Tier volumes also set a record at $21.6bn in daily trades. 

According to the report, spot volumes surged in Q1 2020, with Top Tier exchanges increasing month-on-month since December 2019. Even with the economic uncertainty of the coronavirus, spot volumes for Top Tier exchanges increased 35% on average vs February.

While crypto experienced its single largest day of volume trading, March’s overall volume failed to reach the same levels of Dec. 2017’s crypto bull run.

The report reads, 

Despite the March price crash, volume levels for these exchanges still haven’t reached those seen in the Dec-2017 bull run. Overall, volumes across all Top Tier exchanges increased 8.0% to $288Bn in March.

Binance was the largest Top Tier exchange by volume in March, trading $63.6bn, an increase of 19.2% over the month before. OKEx generated the second-largest volume of $47.7 bn, down 8.2% from February. Coinbase experienced the largest percent increase in volume trading during March, generating $13.3bn, up 41.9%.

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