A Modest Proposal to help the people in a Crisis
English Newspapers Articles in Miami and Venezuela describe a tragic economic crisis of huge proportions in Venezuela.
Hyperinflation
Venezuela is reported to be suffering a prolonged period of hyperinflation and currency devaluation.
In a classic example of theoretical economic theory being illustrated in real life with tragic consequences. Hyperinflation in the South American Country of Venezuela has devalued the countries currency to a point, where much of day to day commerce is conducted in US Dollars. Additionally conversion of the Countries Fiat Currency the Peso to both dollars and cryptocurrencies like Bitcoin is accelerating and Venezuela is becoming a leading user of cryptocurrencies in South America. Ironically, while there are many poor countries in the world, Venezuela serves perhaps as a warning to the world of the type of severe economic degradation that can occur in a previously wealthy country when hyperinflation, governmental crisis and external economic sanctions are brought to bear on a previously wealthy nation.
Cryptocurrency as a stabilizing economic tool
While many people in developed nations see cryptocurrency as a good solution to hyperinflation, nation currency devaluation and widespread economic disruption and poverty. However, these calm assertions don't consider the implications of wide spread economic failures on the countries technologic infrastructure like the internet, and the wide spread interruption of basic services like electricity.
Electricity Shortages and frequent Blackouts
The Economic crisis, Governmental crisis, and other factors have reportedly led to frequent disruptions of the supply of electrical power across the nation.
Internet scarcity and intermittent web page blocking.
Along with disruptions in electrical power, the people of the nation are reported to suffer also from poor access to the internet, which creates a large hurdle to using cryptocurrency, which requires an internet connection to validate transactions.
The efforts to distribute US Dollar pegged stablecoins.
Recent efforts to distribute cryptocurrency stablecoins via a popular money transmission service in North America with reportedly strong business ties in Venezuela has been reported to have had very limited success. And has clearly illustrated the limitations of technologically sophistigated solutions in a degraded technological environment.
South America has lower internet penetration then cellular service penetration.
Many areas of the South America and statistically the majority of the world's citizens have much greater access to cellular phone service then internet service. This concept is clearly demonstarted by the common occurrence throughout the world of cellular service minutes being used as a unit of commerce and being more greatly valued then the devalued national currency of many nations.
It is from this perspective, that a solution is proposed.
I confess I have no on the ground experience in Venezuela during this crisis, and my proposed solution is based on my technological knowlege and my reading of Newspaper reports and the articles written by Venezuelans.
A technology, which allows cryptocurrency to be delivered to the people directly to their mobile phones for these reasons:
#First, because of the greater percentage of people with cellular phone service then people with internet access.
#Second, because of the reported previous widespread use by the people of a simple cellular phone for e-wallet financial transactions. It doesn't require an expensive smartphone.
#Third, because of the above two reasons, this technology requires minimal modification and minimal education for widespread adoption. In other words, it's something that the population already knows how to use.
#Fourth, because this technology doesn't require every user to have internet access for cryptocurrency transaction, only the cellular service provider, which confirms cryptocurrency balances through the cellular service carrier connection to the internet and blockchain, then adjusts cryptocurrency wallet balances by uploading cellphone wallet transactions to the internet to simultaneously adjust wallet balances on the phone and the blockchain on the internet.
#Fifth, because the technology only requires a cellular signal, it is a functional means of using cellphone to enable cryptocurrency transactions in areas with no internet and no electricity. This is especially applicable since those people have already adapted to no internet and frequent power outages with alternative ways of recharging their cell phone batteries.
#Sixth, because cryptocurrency isn't a national currency there are no sovereign nation issues for countries wishing to contribute funds to Non-Governmental Organizations trying to help out the people.
#Seven, because cryptocurrency penetration in south America has increased during this economic crisis, it is already well known and the current limits on it's use involve infrastructure like internet and power, and cellular phone service provider ability to provide the service without breaking any laws in their country or the client country.
#Eight, because this technology was already in use before the economic crisis, in projects whose purpose were to demonstrate the ability of people to use this cellphone technology without power and the internet. we already know it works and we know the cellular service providers in South America already have experience providing the service. The only detail to be worked out is payment for the service and the legal ramifications if the government outlaws this currently legal service.
What is this cellular technology? #SMT-Text-Wallets.
This technology allows people to send cryptocurrency to each other using cell phone text messages.
The technology allows you to use the person’s phone number as their public wallet address, as long as you both have asked your cellphone service providerS to set up a text message cryptocurrency wallet called a SMS Text Wallet. Once you both have a SMS text wallet for the same cryptocurrency, you can also text cryptocurrency to other people who have signed up with that same SMS Text wallet provider.
Special Details
Sending cryptocurrency via text messaging doesn’t require internet service. This means you don’t need the internet, only a cellular signal for the transaction. This means that the electrical power goes off you can still conduct transactions with your cryptocurrency. If you can still use your mobile phone, then you can still send and receive cryptocurrency.
The Important role of the SMS Text wallet Service Provider
The SMS text wallet provider matches your cell phone number to your actual internet based cryptocurrency wallet. The SMS Text Wallet service provider accesses the internet to access the actual cryptocurrency wallets, confirm balances and insure all transactions are recorded on the blockchain.The user or customer can request balance and transaction information from your cellular service provider via text also.
Worldwide value of this technology
#First, it is estimated that over 2 billions of people have no access to the internet, a smart phones, a desktops computers or a laptop computers. So for these 2 billion people, this is their access to cryptocurrency. But they don’t know it yet because it’s new.
#Second, when Dash first launched this service in North and South America they signed up thousands of customers in the USA who had access to the internet, but before this technology allowed them to send and receive cryptocurrency via text messaging they thought cryptocurrency was to complicated to use. They knew how to text, so they didn’t need to learn any new skills. All the complicated aspects were handled by their cellular service provider.
Conclusion
I am writing this idea here in hopes that this information can be disseminated, and people with power and connections can use this idea to improve peoples lives in South America and the world. i am a firm believer that Bitcoin and some other cryptocurrencies are stable stores of value, they preserve and protect buying power, facilitate trade, and the wide spread availability of this solutions underlying technology make it particularly relevant to under developed or poor nations.
@shortsegments
#Red-Ginger #Picture-by @shortsegments
Project Hope is 50% beneficiary of this post.