Simon Chamorro has a radical idea for cryptocurrency. His startup Valiu uses blockchain to offer digital exchange in the hopes of protecting fellow Venezuelans from hyperinflation. If the experiment succeeds, it could be a template for struggling economies everywhere.
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Using Blockchain to Protect Venezuelans From Hyperinflation
Venezuela has been struggling with hyperinflation for years, causing widespread economic instability and hardship for its citizens. The country’s national currency, the bolivar, has lost much of its value, making it nearly impossible for Venezuelans to afford basic necessities like food, medicine, and housing. In the face of this crisis, blockchain technology has emerged as a potential solution to help protect Venezuelans from the devastating effects of hyperinflation.
Blockchain, the technology behind cryptocurrencies like Bitcoin, operates on a decentralized network, where transactions are recorded in a transparent and immutable manner. This inherent transparency and security provided by blockchain can offer several benefits to Venezuelans dealing with hyperinflation.
One way blockchain technology can protect Venezuelans is by providing an alternative store of value. Cryptocurrencies like Bitcoin and stablecoins, which are pegged to traditional fiat currencies, can serve as a hedge against hyperinflation. By converting their bolivars into cryptocurrencies, Venezuelans can preserve their wealth and protect it from the rapidly devaluing national currency. This allows them to access a more stable form of money that is resistant to inflation.
Furthermore, blockchain-based peer-to-peer platforms can facilitate remittances and cross-border transactions, which are essential for Venezuelan families who rely on financial support from relatives or friends abroad. Traditional banking systems often impose high fees and lengthy processing times on these transactions, making it even more challenging for Venezuelans in need of financial assistance. Blockchain platforms can streamline this process, providing faster and cheaper transfers while ensuring transparency and security.
Another way blockchain can help is by enabling decentralized applications (dApps) that provide services like identity verification, access to financial services, and supply chain tracking. These dApps can help Venezuelans overcome government restrictions and inefficiencies, which have worsened the impact of hyperinflation. For instance, a blockchain-based identification system can create digital identities for individuals, enabling them to access financial services and participate in the digital economy.
Moreover, blockchain has the potential to bring more transparency and accountability to the distribution of aid and donations. During times of crisis, international organizations and nonprofits often provide aid to alleviate suffering. However, mismanagement and corruption can divert resources away from those who need them most. By leveraging blockchain technology, the distribution of aid can be recorded on an immutable ledger, ensuring that resources reach the intended recipients and preventing fraud or misappropriation.
Despite the potential benefits, there are challenges that need to be addressed before widespread blockchain adoption in Venezuela becomes a reality. The lack of internet access and technological literacy in some regions of the country pose barriers to adoption. Additionally, regulatory frameworks need to be established to address concerns related to security, consumer protection, and money laundering.
Blockchain technology offers a glimmer of hope for Venezuelans struggling with hyperinflation. By leveraging the transparency, security, and decentralized nature of blockchain, Venezuelans can protect their wealth, access financial services, and navigate the challenging economic landscape they face. However, the successful implementation of blockchain solutions requires collaboration between governments, technology providers, and international organizations to overcome the existing barriers and create a conducive environment for this technology to flourish.
I used to think every investor lose out during inflation, meanwhile, some make millions. I also thought everybody went out of business during the Great Depression, but some went into business. The bottom line, there's always depression for some and profit for others, it all starts with having the right mindset. That said, I've set asides $250k to invest for the future, unfortunately, I'm a complete noob.
MY ADVICE FOR ALL BEGINNER IS TO GET A GREAT EXPERT TO PUT THEM THROUGH
I agree!!! Blockchain is going to flip the country 180 degrees.
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Te apoyo y me quiero sumar trabajar con la tecnología blockchain para dar soluciones como por ejemplo nuestra credencial como venezolanos, censarnos y tener un sistema de votación descentralizado..trabajo en poder lograr la descentralización del saime, todos tenemos derecho a credenciales modernas y legitimas….!
One question for Mr “I want to help the people” are you willing to share the millions/Billions of profit that comes with bitcoins?
That will be real help, not the exploitation.
So sad. Such a rich country…this is what happens when (1) your local elite just take care of themselves and (2) when the majority vote for leftists and populists candidates. This is what comes next in Spain….
I have made huge profits on my investment since i started trading with Rose Humbled, her investment strategy is a top notch
I am very disappointed that in 6 minutes it hasn't been clearly spoken what failed in Venezuela: socialism.
Because let's never forget that socialism has always failed, in all its iterations.
caugh… Bitcoin
Nice video…. I've learned so much thanks for adding more to my knowledge
usage of oil will be very low due to rise in use of sustainable energy
If rich nations proceed to ban the cryptocurrency more and more, poor countries like Venezuela may lost the way of living completely,
Bitcoin is what the world need vs corrup goverments destroying its people.
Why are you afraid to use the word bitcoin? What is this "blockchain" of which you speak?
“please use this currency i invented so that I can basically print money for myself”
Why don't they just implement epayment using USD? Am I missing something?
This technology also has a down side. Privacy and Enforcement. For example, it can used to monitor company supply chains and make sure child labor is not being used. In that same realm, the currency may have strict guidelines as to how it is used, which is why it’s dangerous for governments to control crypto (China and US already on it). BUT I think the best case scenario is government backed crypto and investor backed crypto (private and public). Similarly scuba has a currency for locals and a currency for visitors to use.
With sunlight, soil, seeds, water, most food are produced!
With cows + grass, milk & milk products are made.
Houses can be made with earth + cow dung, cheap.
Electricity from wind/sun.
Just do it
No need of fraudulous $$$
Useless
I mean a few African countries are already doing this. Zimbabwe has EcoCash and Kenya has M-Pesa. Tbh, I have always thought that countries without a stable government (Zimbabwe, Venezuela etc) would be best served by cryptocurrencies. To me that was one of its best uses rather than as an investment. The main idea here is to move the control of money away from the terrible government.
how about instead of blockchain we just lift the 150 sanctions we have against them. Venezuela was doing pretty well before the sanctions, so lift them.
blockchain aint gonna protect them lol, don't even have the infrastructure for it
Crypto sorta helps brings world order, connecting everyone across borders. Eventually borders will fall and humanity will be united.
set this up on the Algorand blockchain and it'll reduce the fees. and algo is a deflationary blockchain
zero information on what exactly his app is doing…
i learned legitimately nothing
This really didn't explain much into how it will actually tackle hyperinflation. It also hasn't addressed the obvious social and technological barriers and how it will play a role in this working/not working. Also a bit more specifics maybe, how does the app work, which actual digital currencies are being used? How dependable are they?
So now Bloomberg is actively promoting scams? cool
They could have used any other global currency to offset inflation. All they need is the payment network and they could use dollars, something similar to SQ or PYPL. I think that would be a better idea than using a volatile asset that could wipe out your savings.
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"The vision for us" – SHILL, crypto does NOT have high adoption in Venezuela
Why Venezuelans use cryptos? Because it is stable.
Every problem in the world:
bLoCkChAiN will fix it
Why not use USD or some other stable currency from another country?
This is overly complex without any advantage. What is the point?
Courage(+wit) is a scarce commodity.
People in venezuela already use paypal and us dollars
Now America would be looking for ways to sanction you
People hate on cryptocurrencies so much yet there is an actual benefit to them!!! Necessity is the mother of all invention. Kudos to that young man doing his thing for the sake of the nation.
The us Gov might off the guy
Bitcoin, not blockchain.
It’s not a dictatorship, it’s a democracy.
Hope we don't see him back in the news, having stole all the crypto.
Thanks Bloomberg quick takes, this was some highly nutritious information
For those saying things like: "VeNeZUeLa iS RuiNEd BecAUsE Of ThE SAncTioNS"… as a Venezuelan myself, I must tell you: why don't you come to see things for yourself… hum?
Why don't you come experience crime, corruption, authoritarianism? among many other things.
Why don't you come see the dismantled, previously private-owned, State businesses?