Venezuelan citizens would be able to purchase digital assets from the welfare accounts that were awarded to them by the state very soon, an update said. This move was made possible due to the recent partnership between the biggest state-owned bank and stablecoin issuer, Glufco. The finds will be provided to them if they wish to buy through the payment system used across the state. The payment system in question, Biopago, has been pivotal in the country in the last few years. Since its establishment, the firm has helped Venezuelans send and receive money from outside and inside the country.
Interested participants can buy the Glufco tokens
The country also uses this same payment system to move money from the central bank into several bonds and other assets through the Patria system. The country recently used this system to facilitate payments of relief checks to its citizens and used the system to make crypto payments. This update now means that Venezuelans would immediately exchange their relief stimulus checks for the Glufco tokens.
The tokens are pegged to the United States dollars, signaling a larger boost to their portfolio. It also means that Venezuelans would hold their funds in dollars and protect themselves against the decline that their currency is suffering recently. This also means that Venezuela’s citizens now have their hands on crypto, and they could decide to change from the Glufco tokens to either one of Bitcoin or other digital assets. This update was made available in a recent press statement by the COO of the stablecoin firm, Antonio Di Caprio, mentioning that they support Bitcoin, Litecoin, Tether, and Dogecoin.
Venezuela’s economy has worsened
Venezuela’s conditions are not new to the entire world as the country has had to put up grand corruption and inflation levels in the last few years. Also, international sanctions, economic recession, and other things have seen the country’s currency take a declining run in the past few years, ranking as one of the world’s worst-performing currencies. A move that the citizens have taken to shield themselves from this is buying up dollars in so many ways.
Even though the country has drummed its illegality until recently, the citizens have been undeterred as they have continued to buy up more. Another way that they have been able to survive is through their investments in digital assets like Bitcoin. A recent publication by analysis firm, Chainalysis has shown that Venezuela has taken up the third spot in countries that adopted crypto last year. Also, its peer-to-peer buying and selling of digital assets have been pointed out as one of the most active worldwide. With the country’s president realizing that the currency has declined almost beyond redemption, they have agreed to look at the dollar as their second currency.