As the economic crisis grows within the socialist state of Venezuela, many citizens have opted out of the hyperinflated local fiat currency, Bolivar, in favor of cryptocurrency, especially Dash (DASH), an altcoin that was forked from the Bitcoin protocol. In response to the adoption of the digital asset, a Venezuela-based blockchain startup was created to offer an SMS-based transactions service called Dash Text. This new service will offer the citizens of the beleaguered country to conduct DASH transactions via SMS within the borders.
The cryptocurrency ecosystem has a strong focus on advancing technology, and most digital assets needs some form of internet access, either through a smartphone of a computer, to be able to transfers funds. Dash Text’s SMS based transactions now allow those with a technological barrier to deal in cryptos.
With reports leaking out of the country concerning the economic disaster plaguing the country, it appears the Bolivar has reached an annual inflation rate of 83,000%. While the rate is staggering, it is not surprising, as media reports of Colombian sneaking meat into the country, and local fisherman turning to piracy in an attempt to have normal everyday necessities. With the local citizens moving over to cryptocurrencies, even the Venezuelan government has made a move into the industry, by issuing out a government sponsored and natural resource backed digital asset called the Petro.
However with all parties involved, it is the case that market penetration of smartphones for the South American country is very low, and this leaves many of them stranded with the Bolivar. In order to remedy this plight, Dash teamed up with BlockCypher, a blockchain solutions provider.
Bradley Zastrow, Dash’s Global Head of Business Development, commented:
“Venezuelans living abroad send an estimated $2 billion back home in remittances. This process often takes too long and costs too much, making it a huge pain point for many users. With Dash Text, we are providing real solutions that address real problems. People need easy and cheap ways to send money home, and we’ve done it in a way that expands the Dash ecosystem to those without smartphones! Dash Text offers the perfect solution to ensure that everyone can become part of the Dash family, regardless of what phone people own.”