Freedom for Venezuela: Zcash to save the economy

The aim is to enable Venezuelans to exchange bolivars in US dollars fairly and anonymously with the help of the crypto currency. Thus the anonymous Kryptowhrung for Venezuelans could become a decentralized alternative to the nationally published Petro.

Zcash founder Zooko Wilcox has entered into a partnership with the news spy

For several years now, Venezuela has not only been experiencing political unrest, but also hyperinflation. The Venezuelan bolivar is losing value every day, and at the same time prices are rising, so that even normal earners can hardly afford their daily shopping. As an attempt to remedy the situation, the government has launched Petro, a crypto currency that is supposedly secured by the news spy country’s own oil reserves:

However, there are several problems with petroleum: it is a centralised currency issued by the state. The advantages of decentralised crypto currencies, which people can use to trade independently of financial institutions, are therefore not available to the petroleum. President Maduro is also highly controversial and his government has little confidence among the population. In addition, the Petro trade violates the sanctions imposed by the USA on Venezuela. President Trump has banned all trade in petroleum from his citizens. No good prospects for the state crypto currency.

Anonymous exchange thanks to Zcash

Zooko Wilcox, founder and CEO of Zerocoin Electric Coin Company (ZECC), now wants to help the Venezuelans with his digital money. Zcash (ZEC) is supposed to start where they bring their bolivars into „security“, namely by exchanging them for the relatively stable US dollar. It is not forbidden for them to buy dollars, but it is more difficult. Thus, in addition to the exchange rate on the free market, there is also the „official“ rate set by the government, which is much higher. In order to avoid this, the inhabitants must be able to exchange without revealing their identity. Zcash is a crypto currency that offers the option of trading anonymously. Someone who wants to save their earned bolivars from depreciation can now convert them first into Zcash and then into US dollars.

Wilcox has teamed up with the AirTM exchange exchange to implement this. People can deposit their local currency here via various transfer services and keep it in US dollars on their own account. A temporary exchange in Zcash serves as an intermediate step and ensures anonymity during the exchange. A further advantage is the transaction fees, which are significantly lower with Zcash than, for example, with Bitcoin.

The partnership between Zcash and AirTM has already begun and users can now exchange money. The project has no connection to the government bodies or anyone on the sanctions list and does not interact with Petro. Therefore, there should be no reason for the US to stop it. According to AirTM founder Ruben Galindo Steckel, there are no plans to cooperate with Venezuelan banks, companies or the government. The project is aimed exclusively at the people. How the Venezuelan government sees this use of the crypto currency is not yet known.