Reserve, a Stablecoin startup, has announced that it will officially launch its payment app that works on a crypto-fiat based model in Venezuela and Angola. The same announcement contained one more piece of information, which was that it had listed its utility token, Reserve Rights (RSR), on the Huobi Global’s Huobi Prime platform.
The app enables crypto-fiat switching
The project’s stablecoin based app which is planned to release “in the coming weeks” for users of the Android mobile operating system. It will allow individuals and businesses alike to switch between the local currency and the project’s US dollar pegged stable coin called the Reserve Dollar (RSD). The announcement confirmed that RSD is a decentralized US dollar-pegged cryptocurrency.
The reason for the launch in Venezuela is due to the extreme levels of inflation currently plaguing the country according to the CEO of Reserve. Nevin Freeman, who is also the co-founder of Reserve had the following to say about the ambitious nature of the launch:
“A lot of people, including some of our investors, discouraged us from starting in Venezuela. [..] The hyperinflation there is the exact problem that Reserve is built to fix, and Venezuela is suffering the most inflation of anywhere in the world right now, so we felt that it had to be done.”
According to the press release, there are no fewer than 16 countries that have an inflation rate of 20% or higher. The situation in Venezuela is particularly troubling, with the Bolivar losing 10% of its value every day. This situation has to lead to a large uptake in the use of cryptocurrencies in the region, with Bitcoin the main player.
Reserve’s utility token will power the network allowing crypto trading of its RSR currency to finance the networks protocol and miners and nodes that support it. Those RSR tokens will be used to buy RSD tokens and thus push forward the economy of scale that Reserve is hoping to achieve. Huobi is hopefully the first of many digital crypto exchanges that will list the currency once it launches.
Reserve has further aid that it reached an agreement for partnership with the largest mobile importer into Angola. 7Mobile Africa will, in accordance with the partnership agreement, preinstall the Reserve app on all Android-based mobile phones sold in the southern African nation.
Coinbase is a major backer of Reserve, along with other prominent names in venture capital investment such as Peter Thiel and Sam Altman among many others. This is the latest project to dip its toes into the remittances market and the support from such a wide variety of investment sources shows that there is clearly an increasing appetite for these types of startups.
Recent news has shown that Somalia is looking to introduce a cryptocurrency within the confines of its border to help facilitate trade in less developed areas of the African nation-state while the British Virgin Islands are looking to cryptocurrency as a means to get money to people during disasters.