Venezuela is having an economic crisis as a result sanction imposed international community. According to a report by the Center for Strategic and International Studies (CSIS), peer-to-peer cash transfer means are being used to undercut the failing government. The report in particular says cryptocurrencies are being used to address a humanitarian crisis in the country.
The role of cryptocurrencies
The economic crisis in Venezuela has been a big test for peer-to-peer cash transfer systems. Many stakeholders are optimistic that crypto will soon be used to transfer aid to address humanitarian crises around the world.
According to the CSIS report however, peer-to-peer transfers have been affected that there is no centralized body that oversees the transfers and reduces chances of misuse of the donated money.
In an article titled “The Maduro Diet: Food v. Freedom in Venezuela,” Moises Rendon gives the details of the scale, advent and the consequences of the crisis in Venezuela. Additionally, Rendon confirms that cryptocurrencies are being used in the country to circumvent the government’s manipulative and controlling tendencies.
The case of NANO
Recently, which is based on DAG made headlines for offering instant and free money transfer to a Reddit user based in Venezuela. However, this method has not been used in other places and much of the donations that have so far passed through the system have been for only one individual. According to BTCManager, user Windows7753 got donations in NANO to buy the necessary sustenance for himself and ten other families.
In another case, Twitter account EatBCH Venezuela, which was launched in May has a bitcoin cash address which can be used by donors to send money directly. The account profile reads, “We are Venezuelans trying our best to feed our neighbors in these difficult times.” The account regularly posts pictures of how the money is being used as well as appeal for more assistance. Another EatBCH account is trying to get help for people in South Sudan, another country facing conflicts.
In the case of Venezuela, peer-to-peer electronic transfers have been more targeted and efficient. This has helped to reduce cases of corruption and misuse of the donated funds.