DASH Launches Crypto Payment Service in Venezuela

DASH Launches Crypto Payment Service in Venezuela

By Benson Toti - min read
Updated 21 March 2023

With “Dash Text”, the DASH cryptocurrency is providing cash-strapped Venezuelans with a way to transfer value, store wealth, and make everyday payments. The SMS-based app helps Venezuelans who work elsewhere in the world instantly transfer money to friends and family within their home country. The app launched fully on November 5, and immediately begins providing makeshift financial solutions in a nation with devastated financial infrastructure. Is this the beginning of decentralised money for Venezuela?

Venezuela's national currency has lost practically all of its value to hyperinflation
Venezuela’s national currency has lost practically all of its value to hyperinflation

The Venezuelan Bolivar is the epitome of a “soft currency”. The Bolivar has been devalued more than 1,000,000% over the past couple of years (and let’s not even discuss the Petro), leaving the state fiat essentially worthless. Cryptocurrency is legal within Venezuela, so enterprising citizens have been turning to cryptocurrencies like Bitcoin for many months. Even when Bitcoin lost 70% of its value from January to November, it was far more stable than the Bolivar.

Remittances to Re-infuse Venezuela With Capital

Different cryptocurrency names captions appearing among changing hexadecimal symbols

One of the main applications for DASH Text will be crypto remittances. These cross-border payments are most often sent between Venezuelans working in wealthy nations, back to needy family members waiting at home. However, remittances have historically been very costly and slow. An individual might have to wait more than a week for such a cross-border payment to clear, and they might lose 25-50% of their balance to fees. Venezuelans living abroad send about $2 billion into Venezuela this way each year.

DASH makes these transactions in an instant, and the fees taken for blockchain network costs are negligible compared to older models. What’s more, the app works within the technological situation that currently exists in Venezuela, where 80% of citizens already have smartphones. With a quick download, anyone can receive, send, spend, or store DASH cryptocurrency.

The DASH cryptocurrency also offers Venezuelans the real chance of significant appreciation. Trading on 9th November at $166, you’d have to have spent more than $1,500 to buy a DASH coin less than one year ago. Though the market may be unhealthy by many metrics, DASH Text is proof of yet another use case for this tried and true cryptocurrency. The introduction of DASH text could bring many new users into the DASH fold, increasing demand and driving up prices in the bargain. Eventually, an event like this could spur on the next bull run.

Because DASH is a decentralised currency, what’s good for one DASH market is good for DASH markets worldwide. DASH is no longer a young cryptocurrency, but it’s still the 12th most valuable cryptocurrency in the industry. Venezuelans in desperate need of money likely don’t care if DASH is the newest coin on the block – they just want money that works, and DASH performs perfectly well in that regard.


Featured image source: Pixabay