Circle will route US aid for the Venezuelan health workers via the USDC stablecoin with the government being in exile as we are reading in our USDC news.
The US recognized Juan Guaido and not Nicolas Maduro as the Venezuelan president. Maduro blocked the exiled government’s access to cash but Guaido has access to the seized regime funds of Maduro within the US. Circle will route these funds to the Venezuelan health workers by using its USDC Stablecoin. Circle along with Coinbase issues the USDC stablecoin and they announced today that it has coordinated with the US government and Latin America’s crypto exchange platform Airtm, to route aid for the healthcare workers in Venezuela.
Venezuela seemingly has two presidents. There’s Nicolas Maduro, the socialist leader who is in power since 2013 while the other one is Juan Guaido who is the leader of the National Assembly which declared him as acting president in January 2019. More than 50 countries recognized him as the legitimate ruler as well as the United States which simultaneously put up sanctions on the Maduro regime. After that, Maduro limited Guaido’s access to cash. Now, Circle stepped in to help and to try and provide funds for all the healthcare workers of Venezuela as the country was hit hard by the Covid-19 virus. The system will work like this:
“The US Treasury and Federal Reserve releases seized funds to the Guaidó government’s account at a US bank. The Guaidó government then uses those funds to mint USDC. The USDC is then sent to Airtm.”
Once the USDC stablecoin enters the Airtm wallets, they will go to the healthcare workers in the form of AirUSD which is Airtm’s own fiat-backed stablecoin. The recipients will then be able to withdraw at banks and will send the funds or will be able to spend them online. According to Circle, this will “bypass the controls imposed by Maduro over the domestic financial system and put millions of dollars of funds into the hands of people fighting for the health and safety of the people of Venezuela.”
Alejandro Machado from Open Money Initiative and Valiu said:
“I think all efforts that end up in more Venezuelans being in greater control of their money are worth it. Helping health workers in particular is one of the best things anyone can do in the middle of a pandemic—most of them earn less than $3 a month.”
However, not everyone thinks that this is a great idea. Crypto researcher Hasu said that it is both impressive and scary so now the US will start exporting dollars to third-world countries via crypto. This is what makes it scary. Now, it looks like the US government found a way to send the funds but the plans are only relying on Airtm which was blocked in Venezuela since 2018.
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