Venezuela is not a typical country where the national currency is sufficient for everyday and emergency purchases. on the contrary. The problem is that everything is becoming more expensive every day due to constant inflation and a seemingly unbeatable exchange rate at the moment.
For example, creating a market is difficult. For those who only deal with bolivars, Literally facing daily price increasessince these are arbitrated by the Central Bank of Venezuela (BCV) and indexed to the dollar rate.
US currency value expressed in local currency Up 282% so far this yearas seen in the graph below. This is no small thing, as Venezuelan inflation has an important component in the dollar exchange rate.
This is where alternatives such as USDT, a stable cryptocurrency pegged to the US dollar issued by Tether Limited, stand out. Adoption of this currency has increased significantly There was no physical dollar in Venezuela, and of course there was an ongoing economic crisis.
CriptoNoticias has widely reported on the increasing use of USDT in Venezuela. Applications, partnerships, and new alternatives to using this stablecoin have been developed over the last year. this, A new way to combat inflation and become part of the digital economy.
Although USDT is not the same as the dollar, it is typically traded in Venezuela on peer-to-peer (P2P) markets on exchanges such as Binance, Bybit, and Bitfinex. The price of this cryptocurrency on these platforms is almost 50% higher than the official rate for the North American currency. This means that on BCV the dollar rate is 199.10 bolivars, while on Binance P2P 1 USDT is trading at more than 290 bolivars.
That is, in reality, It’s a savings for those who use USDT. Add to this the use of Casia, Venezuela’s largest credit and debt platform, and you have a formula to protect yourself from inflationary phenomena.
Let’s test the formula
I have confirmed that the USDT + Cashea formula is indeed ideal for dealing with Venezuelan inflation.
We should now be clear: this only applies to those who are regular users of Venezuela’s world’s largest stablecoin, and who, by the way, are part of the Venezuelan startup credit ecosystem that processes over $300 million every month.
I started by trading 100 USDT on Binance. I was surprised when I entered the P2P market. The fee is 293 bolivars on sale per USDT. I became a winner. 100 USDT becomes 29,300 Bolivar. 55% of $100 exchanged at the BCV rate was only 18,900 bolivars.
I turned it on RamonaI took my bike and set out. I went to a famous supermarket in Caracas. enableMake payments through Cashea. It was just what was needed to fill the shelves at home and guarantee a few weeks’ worth of food for the family. “That’s what men do!” I echoed in my mind. He was on his way to the scene, laughing and feeling satisfied, remembering that famous episode of The Fresh Prince of Rap.
That’s before you make your typical shopping list, of course. I can’t go out without her. I need to control what I get. And yes, I was 55% in favor of using USDT, but you also have to consider the expense. My father taught me that.
Once there, the journey began. I got in my shopping cart and started buying pasta, rice, grains, cookies, sauces, cleaning supplies, toiletries, and “dried meat” as they call meat in Venezuela.
surely, I put everything I need for the next few weeks into that cart.. It was interesting to see couples and families in the same situation around me. It’s a harmonious environment that only those of us who work in marketing can experience.
“Payment,” I said, making sure everything was in order and heading to the register. litmus paper. I removed the items from the cart, the cashier checked out, and a market employee bagged the items. A completely unified system, paralyzed by a faint voice. “44,691.51 bolivars, or $244. How would you like to pay?”
So I took out the secret letter. “Cassia, please.” Immediately the cashier activated the system and allowed me to cancel the large amount, even though it seemed like too much. It was enough to purchase just over 50 different products.
The rest was history. I paid through that platform using Cashea’s daily payment line. This allows you to pay an initial payment of 40% and the remaining (60%) in one lump sum within 14 days.
Therefore, I paid $97.6 (BCV exchange, i.e. 18,440 bolivars) and the balance left in my account as an exchange of 100 USDT (10,860 bolivars, equivalent to official $57). I used it to pay off some of the debt I got with Cashea146.40 USD (27,669 Bolivars at BCV exchange rate).
I was left with a debt of 16,800 bolivars, which is equivalent to almost 90 USD in official dollars. But in USDT, it was only 57 USDT.
Why is the USDT + Cashea formula anti-inflationary?
Simple: Thanks to USDT, on the one hand, we increased our purchasing power by 50% and were able to protect ourselves from the rising inflation in Venezuela. Meanwhile, Kassia made me borrow up to two weeks to pay. Reduce your cost of living by getting basic necessities.
In other words, using USDT and Cashea in Venezuela will help you deal with inflation Because they serve complementary functions,: USDT is pegged to the dollar, which protects the currency’s value from devaluation of the bolivar. This allows you to maintain more stable purchasing power. On the other hand, Cashea offers the possibility of purchasing on credit without interest, which is advantageous in an inflationary environment, since products are purchased at current prices and paid later with less valuable money.
Together, save with USDT and finance your purchases with Cashea A practical way to reduce the impact of inflation You can better manage your resources.
Aaron Olmos, an economist specializing in cryptocurrencies, explains in detail to CriptoNoticias why this formula is suitable for combating inflation in Venezuela.
Olmos said the option for Venezuelans to expand their purchasing power and protect their asset surplus from inflation through interest-free installments is “welcome in a country where options are running out through banks and traditional mechanisms.”
“Cassia is providing a service that Venezuelans didn’t know they needed so much, and that banks are currently not in a position to provide,” he explained, noting that “many Venezuelans can already store USDT and even use it as a means of payment.”
Olmos commented that the Caribbean country has a high statutory reserve requirement of 73% and a real interest rate of 60% per annum. Significant conspiracy may be established Between these platforms and the options they offer.
But he warns: “Taking on debt is not a bad thing, but taking on debt when you don’t have the ability to pay is complicated because your income is going down and down. And taking on debt in dollars is even more complicated because you probably can’t produce the money and you probably can’t get the money the way you spend it.
Therefore, this formula is Applicable only to those who do not use bolivarsIn Olmos’ opinion, these tools are “increasingly valued.”
“And it is not surprising that there are more and more users and other applications on the market as well. These are emerging as healthy competition and creating significant space as well,” he concludes.