Venezuela-inflation-drags-on -can-blockchain-be-a-solution
  • Download Apps
25k+
close Image

Venezuela Inflation Drags on and Can Blockchain be A Solution?

by Frederik Bussler — 4 years ago in Security 2 min. read
3141

Every day, countless stories are released on the global financial crisis, including stories on the instabilities of emerging market currencies, laying out a myriad of problems, but with few viable solutions. Recently, a Forbes article on Venezuela’s ongoing hyperinflation crisis made the rounds, discussing the laughability of inflation forecasts neighboring 10,000,000%, although the current reality is not all-too-better at over 10,000%.

By any definition, it is a crisis: It is certainly one for those who can barely afford basic necessities, and it is a crisis for these emerging markets that are tasked with solving a seemingly insurmountable problem. Further, this crisis is far from over, as emerging markets face issues beyond inflation, from government seizure to local catastrophe, encompassing everything from downright robbery to the plague of corruption.

The “good” news, if there is any, is that we can hypothetically understand the causes of these problems, which are rooted in financial exclusion. If we were able to build and deploy systems for financial inclusion, we could attack these issues at their core — something governments have failed to do time and time again.



Financial inclusion means making financial services more affordable and accessible, but the size and complexity of financial exclusion, combined with the interdependent, interlocking nature of involved economic organizations, defies easy reforms. Opportunities for alleviating these issues and democratizing finance through the use of technologies like blockchain are often neglected, in favor of “sexier” or easier use-cases, something I’ve noticed in the industry.

However, one company presenting a viable, live, and user-adopted solution is Invictus Capital, an alternative investments platform powered by blockchain. As Daniel Schwartzkopff, Invictus Capital Founder & CEO writes:

“We enable financial inclusion — in developed markets we allow people access to alternatives like venture capital and real estate that traditionally had very high minimums and long lockups. In emerging markets we service entire portfolios as there are no local alternatives.”

Besides greater access to alternative investments, another issue, also pertaining to financial exclusion and with the potential of a 
blockchain solution, is the instability of emerging market currencies like the Venezuelan bolívar. As discussed, issues from inflation to seizure to catastrophe wreak havoc on the lives of many in emerging markets, so there exists a clear-as-day “pain-point.”
Invictus Capital aims to alleviate this pain point by giving people a way to save on the blockchain, such that their capital isn’t subject to these crises. Clearly, the market has agreed that such a solution adds value, as they’ve on-boarded 15,000 investors from 148 countries since their first fund was launched in late 2017.

Ultimately, blockchain-based solutions with such a massive scope of impact are few and far between, but to see Invictus’ user adoption and traction is potentially a harbinger of a bigger and brighter blockchain future.

Frederik Bussler

Frederik Bussler is the Founder of the Security Token Alliance, the industry's largest think tank with over 100 partners. As a public speaker, he has presented for audiences including IBM, Nikkei, Slush Tokyo, and the Chinese government, and is featured in outlets including Forbes, Yahoo, Thrive Global, Hacker Noon, European Commission sites, and more.

Top 10 News

view all
Follow us on

Categories

Related Posts

img

Security

What Do You Need To Know About Flashcards In Cybersecurity S...
By: Alan Jackson, Thu April 18, 2024

Amid today’s complex web of security threats and the continuous need for..

img

Security

Conquering The Calamity: Troubleshooting USB Flash Drive Iss...
By: Evelyn Addison, Fri March 8, 2024

The humble of troubleshooting USB flash drive. Small, portable, and seemingly..

img

Security

Main Types Of Cloud Services
By: Micah James, Thu March 7, 2024

Moving to the cloud has become more than a trend for businesses; it’s a..

img

Security

Your Data, Your Control: How Do I Get My Data Removed?
By: Micah James, Wed March 6, 2024

Today, personal information is more important than ever. That is why it is..

img

Security

Cracking The Code: A Comprehensive Guide To Recognizing And ...
By: Micah James, Mon February 26, 2024

In a time when the digital landscape is ever-expanding, individuals must be..

img

Security

How to Hide Your Phone Number on iPhone
By: Evelyn Addison, Fri February 23, 2024

Privacy is becoming increasingly important in today’s digital age, and..

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Copyright © 2018 – The Next Tech. All Rights Reserved.