Cross-border payment startup in Columbia, Valiu, has introduced Bitcoin-backed synthetic dollars (cryptodollar) which would be used to access stable assets and combat the hyperinflation that has been troubling the national economy of Venezuela.
To bring currency in use, Valiu collaborated with Rappi, a food delivery app of Latin America. The Columbian startup hopes that till the end of this year it would get a larger user base who would help in the adoption of cryptodollar.
The crypto dollars has been stored in a smartphone wallet app and the Venezuelans could easily trade them without paying any charges.
Although it is a Bitcoin-backed dollar, still the users who do not have any information about cryptocurrencies could also use them. People who know nothing about cryptocurrencies could purchase it and transfer it.
While transferring the bitcoin-backed synthetic dollar the user would have to deposit cash at one of the payment partners of Valiu present in Columbia.
The advisor at Columbia-based startup, Sid Ramesh, recently posted a video which would be helpful for the users when they will use the app. In the video, Ramesh has explained the step-by-step operation of the app.
It has been noted that the app takes less than 30 seconds to transfer crtyptodollars from one account to other.
The CEO of the Columbian company mentioned that he got the idea of developing bitcoin-backed synthetic dollar from the migrant workers. The workers came to Columbia from Venezuela and have been using risky payment methods like Western Union and MoneyGram.
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