Cryptos Act as Hope in a Hyperinflation-Striken Venezuela
Venezuela’s inflation rate is expected to hit ten million percent in 2019. In this time, Venezuelans are struggling to afford two square meals a day. Online news outlet City News 1130 shared how nonprofit organizations are sending direct relief to people in Venezuela in cryptocurrencies and helping them escape the severe financial crisis.
Finding Safety in Crypto Payments
Many crypto enthusiasts have debated how cryptos can replace traditional fiat currencies.
The fact that it has no affiliation to a central authority makes it resistant to inflation due to the poor decisions of changing governments and their policies. The acute inflation rates in Venezuela is seeing these statements come to reality. An increasing number of people are preferring to store their wealth in cryptocurrencies rather than in the Bolivar, Venezuela’s national currency.
In response to the poverty that has dawned upon Venezuelans due to hyperinflation, GiveCrypto, a cryptocurrency charity, has helped more than 100 Venezuelan families by donating $7 per week in cryptocurrencies. This equals the average monthly wage in Venezuela.
The City News report shared the heartbreaking story of a mother who’d been skipping her meals so that her three children could get proper nutrition. Things improved for the family when they were enrolled for the program where they received EOS donations from GiveCrytpos through a mobile app. Though the three-month trial period has come to an end, the family is thankful that those crypto donations saved them from malnutrition.
The startup also took the initiative to help Venezuelans learn to use cryptocurrency wallets and exchanges. The use of cryptocurrencies is expected to help citizens convert their savings and earnings into a suitable digital asset and stay unharmed from the rising inflation rates.
Project manager Efrain Pineda stated that they wanted to show that cryptocurrencies are also of use to everyday users with a non-technical background. Pineda further added:
“Anyone can use crypto to protect themselves from inflation and make their daily life easier.”
An informal merchant who began accepting crypto payments two months ago expressed her thankfulness for being introduced to the technology:
“We used to be in a rush to purchase goods before our bolivars lost their value. Now we can take our time and we know that our earnings are in a safe place.”
Making cryptocurrencies mainstream in a country like Venezuela is still an uphill battle owing to the electricity failures and poor Internet connectivity. But efforts from startups like GiveCryptos and AirTm, which is currently raising $1 million funds to donate to Venezuelans, still act as a beam of hope in the cloud of disappointments.