Bitcoin and other cryptocurrencies have had a troubled history in Venezuela. The Venezuelan economy has experienced extreme hyperinflation over the last year, reaching more than 800%. The Venezuelan government has taken an extreme approach to Bitcoin regulation, forcing SurBitcoin- the largest exchange in the country- to completely suspend fiat currency operations including withdrawals or deposits.
Bitcoin, however, remains extremely popular in Venezuela with individuals seeking an alternative method of storing value outside of the rampant inflation of the Venezuelan economy. As Bitcoin is completely immune to inflation, it’s the ideal solution for Venezuelans that are experiencing the negative inflammatory effects of a poorly managed fiat currency economy.
The Venezuelan government has recently begun to adopt cryptocurrency, and is working to create a regulatory framework. Under the watchful eye of Sudeban, the highest level banking regulatory body in Venezuela, the Venezuelan government has given official permission for a new exchange to begin operations.
MonkeyCoin is the first cryptocurrency exchange that possesses the stamp of approval from the Venezuelan government, and is working closely with regulatory bodies to allow Venezuelans to access Bitcoin and other cryptocurrencies in a legal manner.
In this article, we’ll take a look at Monkeycoin and find out how it works to find out whether it can bring legal cryptocurrencies to one of the places in which they are needed most.
What Is MonkeyCoin?
MonkeyCoin is currently working in close partnership with the Venezuelan government to establish a comprehensive architecture that allows for the sale of cryptocurrencies while still conforming to Know Your Customer and Anti Money Laundering legislation.
The Monkeycoin platform is constructed entirely on white-label exchange software called Draglet, which provides virtually every service offered by Monkeycoin, including the trading algorithm and KYC management, and even order book management.
Interestingly, the Monkeycoin Draglet architecture uses a Distributed Shared Orderbook that allows Monkeycoin to connect to a large network of crypto exchanges around the world and share their order books. This ensures that Monkeycoin will possess a full order book from launch, allowing Monkeycoin users to buy and sell cryptocurrency from users of every other exchange in the Distributed Shared Orderbook network.
Monkeycoin also offers strong security for users. Leveraging the latest in encryption technology, Monkeycoin uses multi-signature cold-storage wallets for customer funds, which are also provided by draglet. In light of recent hacks and security issues in the cryptocurrency industry, security measures such as these are critical for any new exchange.
MonkeyCoin appears to be exactly what the Venezuelan population needs at this point in time. With the Venezuelan government arresting Bitcoin traders and miners in the past, the crypto-climate in the country has been far less than favorable to a healthy crypto market.
With the launch of Monkeycoin, Venezuela is set to benefit from the ongoing crypto-boom and could potentially even leverage the benefits offered by blockchain technology to stabilize their own runaway economy. In a distressed economy, access to the stable finance that Bitcoin offers over the long term scale is critical.