Johns Hopkins Prof Steve Hanke Says Crypto Is The Remedy To Hyperinflation; Partners With AirTM
Steve Hanke: Crypto Is The Remedy To Hyperinflation
Economists are increasingly accepting that blockchain technology can improve the efficiency of cross-border transactions. Steve Hanke, a distinguished expert on currency economics and hyperinflation, is heading the mission to revive the Venezuelan economy which could collapse due to excessive inflation.
The above-mentioned initiative is called ‘Airdrop Venezuela.’ The objective is to raise $1 million worth of cryptocurrencies, which will later be disbursed to 100,000 locals. The Venezuelans will access the funds through AirTM, a digital wallet that is directly linked to conventional bank accounts. At the time of writing, Airdrop Venezuela had received $160,000.
Hanke acknowledged that the crypto space faces multiple challenges, including fraud, volatility and hacking. Hover, the professor noted that virtual currencies can increase accountability and transparency in the delivery of donations to the poor.
To date, the Airdrop Venezuela initiative has proven to be efficient in the transfer of charitable donations to the needy. Much of this success results from the attributes of blockchain technology, such as low transaction fees, trustlessness and absence of intermediaries.
The problem, however, is the low adoption rate of cryptocurrencies amongst Venezuelan merchants. AirTM is confident that linking crypto wallets to standard bank accounts will solve this issue. Hanke shares this sentiment and believes that Airdrop Venezuela will increase the adoption rates for cryptocurrencies.
Besides affordability and transparency, cryptocurrencies have another advantage – they are not controlled by governments. According to Hanke, fiat money is controlled by the government who mostly ac or their own interests. On the other hand, cryptos cannot be censored and can save Venezuelans from the shackles of hyperinflation.
AirTM will certainly benefit greatly from their involvement with the Airdrop initiative. Hank has a reputation of handling inflation challenges, having served as an advisor to American and Venezuelan administrations. Also, there is an economic institute named after him in Caracas, the capital of Venezuela.