Coinbase-funded stablecoin firm Reserve has revealed that it is set to roll out a crypto-fiat payments app in Venezuela and Angola. The application is dubbed “Venmo Style App”. Reserve also announced that it would list its own utility token named “Reserve Rights” RSR, on Huobi Prime. Huobi Prime is Huobi Global’s token sale platform.
Reserve made this announcement through a press release, noting that the stablecoin app would go live in the coming weeks. It would be available for Android users through Google Play. According to the firm, the Venmo Style App would let individuals and businesses swap fiats for its stablecoin dubbed “Reserve Dollar” (RSD). Venmo Style would also allow its users to change RSD to fiats. Reserve also unveiled that RSD is decentralized and pegged to the US Dollar.
Venmo Style App Seeks to Reduce Inflation
In the press release, Nevin Freeman, Reserve’s co-founder and CEO disclosed that launching the app in Venezuela is correlated with the level of inflation in the country.
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.
Per Reserve, there are 16 countries with annual inflation rates that are higher than 20 percent. However, the firm believes that Venezuela’s condition is far worse. This is because the Venezuelan bolivar sheds 10 percent of its value almost every day.
According to a report earlier this year, the worsening financial crisis in Venezuela has seen the country’s citizens adopt BTC and other crypto coins. At the end of last year, DASH announced that more than 2,500 traders in the country were accepting it for payments. This number had gone up from 1,000 in August last year.
Reserve Collaborates with Angola-based 7Mobile Africa
Reserve also mentioned that it had joined hands with 7Mobile Africa, Angola’s biggest mobile importer. This partnership will see all 7Mobile Africa imported smartphones come with the Venmo Style App pre-installed.
Other than Coinbase, Reserve managed to get the support of other leading investors last year. These include Peter Thiel, Sam Altman, and Digital Currency Group among others.
Do you think the launch of the Venmo Style App will increase crypto adoption in Venezuela and Angola? Let us know in the comments below.