The investors of trendy USDC stablecoin Circle will collaborate with the Bolivarian Republic of Venezuela and Airtm, an American crypto exchange, to disperse its stablecoin USDC. The announcement came a few hours ago. The Circle has harmonized with the US government and Latin American exchange to aid Venezuela’s economic difficulty.
Since 2016, Venezuela has agonized with hyperinflation. The belief is that the controversial president Nicolas Maduro’s inclination to money printing caused the ordeal. Venezuela has two heads of state, Nicolas Maduro, Socialist leader, and Juan Guaido, National assembly leader. Several countries, including the US, recognize Juan Guaido as the legal ruler.
The US government had placed sanctions on the Maduros administration. He reacted by limiting Guaido’s ability to obtain cash. Hyperinflation has negatively affected the health workers who have found their funds worthless; Corona Virus has hastened the country’s suffering.
Venezuela is one of the most affected countries’ by COVID-19. Amnesty International said that infection figures the Venezuelan government reported are likely lower than the actual number. They also said that the mistreatment of healthcare workers is also on the rise. Health workers have been fleeing the country, and those healthcare workers that remain are underpaid.
Circle’s USDC coin has the capabilities of resolving these issues since it is a stablecoin. Stablecoins are virtually digital currencies backed up by fiat currency. Circle hopes to provide funds to the country’s health workers to help deal with the disastrous pandemic and hyperinflation. The funds will be pinned on the US dollar so that it doesn’t endure changes in prices.USDC is a digital currency; thus, its distribution is quick.
President Juan Guaido leads this vital collaboration supported by Airtm and the US government, who will manage all coordination and licensing. The partnership is unique as a digital stablecoin has never issued foreign aid, let alone through distribution from the US government.
Administration of Funds
In a Circle blog statement, the company stated that it would liberate seized funds to the Guaido government, mint USDC. Furthermore, Airtm will receive more USDC. From Airtm, the funds will go to Venezuela health workers as AirUSD, a stablecoin supported by Airtm. The recipients can withdraw from the banks as bolivars at an unconfined market rate.
Airtm has around 500,000 users in Venezuela; Its trading platform is fraud-free and educates users on digital wallets’ employment. A few months ago, Maduro blocked the exchange from dispersing $18 million in aid. The company hopes that the partnership is the lifeline they needed as they were at a strenuous point.
Quite a few people doubt the idea of the US exporting dollars to a country via crypto rails. Crypto researcher Hasu said that the idea was both impressive and scary.