- The cryptocurrency exchange Criptolago has introduced a new service that allows Bitcoin, Litecoin, Dash and some other digital assets to be sent offline.
- This is necessary due to poor Internet availability and the continuing crisis of the coronavirus.
Not all countries in the world have regular electricity and Internet access, so sending money and cryptocurrencies can sometimes be a real challenge. In Venezuela, too, the current economic situation is plagued by persistent hyperinflation, as a result of which President Nicolas Maduro has ordered special measures.
Criptolago has developed offline transactions
According to the official statement of the exchange, Criptolago, following an appeal by the president, has developed a payment mechanism that can be used in parallel with the traditional banking system. Maduro recently stressed that there is a great need to create offline payment systems that are compatible with the country’s own digital currency, the Petro.
A few days ago, the exchange announced that offline transactions are now available for all available digital assets such as Bitcoin, Litecoin, Dash, Petro and Glufco (tokens of the Venezuelan crypto investment bank). In addition, the national fiat currency, Bolivar, can also be sent offline via SMS.
At the moment, the service is only available to registered users, but it is very easy to create an account on the exchange and subsequently use this new service.
Siguiendo lineamientos de nuestro presidente @NicolasMaduro y en pro de nuestra #criptonacion, con la nueva función de Pagos por #SMS hemos abierto la posibilidad a todo el pueblo venezolano a realizar transacciones #Petro de una forma muy practica @OmarPrietoGob @JoselitRamirez
— Criptolago (@criptolago) April 5, 2020
This innovative idea is praised by experts in the industry, but there is a fundamental problem. The price of the Petro is unstable, which means that there are large price differences on different Venezuelan exchanges, making it difficult to pay with the Petro because the price range is too wide. The news portal Morocotacoin reports that the price per Petro Token on the local exchange Amberes is $11.50 and according to government sources the price is said to be $58.9 per token.
As a result, it is difficult for businesses to accept Petro as a bolivar alternative because the price fluctuations are too great and no uniform exchange value can be found. Venezuela has already introduced its own cryptocurrency Petro in 2018, which according to the government is tied to the country’s oil reserves.
This was intended to create an alternative currency to circumvent the sanctions imposed by the USA. However, some sources report that the Petro project has failed in the country. Nevertheless, there are other alternatives for handling offline transactions.
Dash text already widely used
An already known offline payment service is Dash Text. According to the official usage data, there are currently more than 8,000 active users of this service. Dash Text allows you to send Dash via SMS. The service is connected to a Dash wallet of the user, to which the Dash is transferred in real time. At peak times, approximately 30 transactions per day were processed via this service, the majority of which originated in Venezuela.
However, the usage figures have declined sharply in recent months due to the sharp price decline in the crypto market. Criptolago has not yet published any statistics, so it remains to be seen whether this new service will catch on.
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