Per the press release, the project’s stablecoin app — to be launched for Android users via Google Play “in the coming weeks” — will enable people and businesses to switch back and forth from their local fiat currency to the firm’s stablecoin, the Reserve Dollar (RSD).
Nevin Freeman, co-founder and CEO of Reserve, told Cointelegraph that the reason the app is launching in Venezuela in particular is linked to the extreme level of inflation in the country, noting:
“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.”
The press release claims that there are currently 16 countries with annual inflation greater than 20%, but that the situation in Venezuela is particularly troubling, with the Venezuelan bolivar losing nearly 10% of its value every day. Near the end of December, dash (DASH) celebrated the 2,500th merchant in Venezuela to accept the coin as payment.
As Cointelegraph reported in June last year, in addition to Coinbase, the project has received backing from major venture capital names, such as Peter Thiel, Sam Altman, Digital Currency Group, Arrington XRP Capital, Distributed Global and GSR.IO, among others. According to the new requirements, the state has set out monthly limits and commissions, payable to the National Superintendency of Crypto Assets and Related Activities, on cryptocurrency remittances.