A cryptocurrency exchange by the name of CoinCola is expanding internationally and has chosen Venezuela as its first new market. The Hong Kong-based exchange hopes its over-the-counter (OTC) trading platform can help increase the adoption of cryptocurrencies in the country and aid the economic recovery of the inflation-hit country.
Cryptocurrencies and blockchain technologies as a whole have been making their way into both public a private sphere’s, offering a myriad of benefits and challenges to the conventions of our daily lives and in some cases, they are profoundly positive.
The Venezuela economic crisis is a prime example of the technology impacting the world in a humanistic way; this year the South American island has undergone several radical economic shifts in relation to cryptocurrencies. Since 2012, the nation has been falling into an economic crisis caused by failed monetary policies, overspending and unprecedented hyperinflation.
The devaluation of the nation’s government-backed currency led to interesting developments; in May, a single Satoshi (one one-hundred-millionth of a Bitcoin) was worth nearly six Venezuelan Bolivars Fuertes (VEF), and soon, news of Venezuelans adopting Bitcoin over their fiat became widespread news.
Hyperinflation in Venezuela has caused the nation’s economy to collapse; since then cryptocurrencies have become a centrepiece in the conversation. The Venezuelan government issued a new state-backed cryptocurrency called the ‘Petro’ that would provide aid in the crisis and alleviate that financial burden of the Venezuelan bolívar.
However, Petro tokens have come under a great deal of scrutiny, with allegations of falsified records and furthermore, investigations have revealed that Petro is not backed by oil as it had first claimed to be.
Public confidence in Petro is extremely low and is not being adopted as it had been intended, however, Bitcoin remains triumphant. Founder of Bitcoin awareness website Bitcoin Venezuela believes that cryptocurrencies are now the way to a financially secure future.
Venezuelan currency controls have caused further controversies to unravel: purchasing foreign currencies isn’t a possibility, withdrawing cash is costly, and spending money via credit or debit card comes with a huge premium percentage. This causes workers to spend wages on goods as soon as they are paid and then eventually, trading their purchased goods with others.
CoinCola is proactively engaging with this crisis as it feels that in addition to philanthropic endeavours that promote financial inclusion such as Bitcoin Venezuela, a longer-term solution is needed and a peer-to-peer (P2P) exchange that will have some bespoke features for Venezuelans may suffice as a solution.
In addition to Bitcoin (BTC), CoinCola supports Ethereum (ETH), Tether (USDT), Bitcoin Cash (BCH), Litecoin (LTC) and Dash (DASH). The CoinCola OTC marketplace offers users a means to trade cryptocurrency directly between each other using their local fiat currency. The CoinCola Exchange allows users to expand their portfolios via pair trading.
CoinCola has also partnered with Dash, an organization that has already seen its cryptocurrency widely utilized in Venezuela. Both companies believe in digital assets as a means to reduce the impact of the economic crisis.
CoinCola’s partnership with Dash now means that for a limited time, there will be zero charges for DASH trades on the CoinCola OTC marketplace. All users outside of China can also enjoy a special promotional 0.5% fee for OTC trades for all other coins (offers available until October 31st, 2018). Additionally, CoinCola is adding a referral scheme bonus that comes in the form of a 50% commission share of the OTC fee for Venezuelans.
CoinCola also has a mobile app, this will naturally increase accessibility and may prove to be a valuable tool for Venezuelans seeking to utilize cryptocurrencies as if they were traditional finances.
With CoinCola now building a team in Venezuela, their expansion to Venezuela should come with a myriad of benefits for the nation and prove that cryptocurrencies have real-world application beyond that of novelty spending options and speculative trading.