- Cryptodollars are 100% backed by Bitcoin and have zero transaction fees
Valiu, which is a cross-border remittance startup based in Colombia, has launched the Cryptodollar, which is a digital dollar that is 100% backed by Bitcoin and can be sent for zero transaction fees via a smartphone app. The crypto token could be a solution to Venezuela’s hyperinflation problem, where the inflation rate has consistently been thousands of percent per year according to the Cafe Con Leche Index.
Apparently, the idea for the Cryptodollar was inspired by an influx of migrant workers coming from Venezuela to Colombia. Also, Valiu has been providing fiat remittance services to Venezuela for seven months, and during the time it takes for a funds transfer to arrive in Venezuela, the value in Bolivars often declines significantly, which is why Valiu has strived to create a solution for Venezuela’s hyperinflation problem.
Venezuelans will be able to buy Cryptodollars at thousands of Vailu partner locations across Venezuela, giving the digital asset a solid chance of actually being a serious solution for the lack of stable fiat currency in Venezuela. That being said, the Cryptodollar is in alpha testing mode at this point, so it hasn’t fully launched yet, although the full launch is expected in the near future.
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