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Ethereum Classic

Venezuela launched its own Stock Exchange


According to Official Gazette 6,578 dated September 29. Through the National Securities Superintendency (SUNAVAL). Specifically, Venezuela launched its own Ethereum-based decentralized Stock Exchange, called BDVE.

This new Stock Exchange is part of the strategies to counteract the social impact of the sanctions. Likewise, the financial and commercial blockade denounced by the Venezuelan executive.

Thus, it is the world’s first decentralized Stock Exchange. Designed to negotiate in the country, financial assets in a distributed and simple way.

The Official Gazette itself mentions:

“The Stock Market represents a new and innovative segment of the stock market. In this way, it provides the investor with security and control. About your financial assets.

Basically, the announcement of the launch of the Stock Market. It came shortly after Nicolás Maduro, the president of Venezuela, reported an anti-sanctions bill. Aimed at mitigating the impact of economic sanctions in the country.

In this regard, the bill noted that private and state-backed cryptocurrencies, such as Petro. They could be used to trade beyond the scope of economic sanctions.

Venezuela and its own Stock Exchange BDVE

Precisely, the Stock Exchange (BDVE) is connected to the national and international markets. Through the Decentralized System of Encrypted Markets (SIDEME).

It certainly allows remote access from anywhere in the world. Maintaining the custody of the assets in the hands of the user.

In terms of digital currencies, Venezuela was the first country to issue its own cryptocurrency. Its value depends directly on the national oil reserves. In fact, the Venezuelan national cryptocurrency is the Petro.

To remember, in 2017, Nicolás Maduro announced the development and issuance of the cryptocurrency. As a result, it is a way to become more financially independent. And solve all the problems of the Venezuelan economy.

What is the BDVE?

It is a Stock Exchange, connected to the Decentralized System of Encrypted Markets. Indeed, its power resides in the ability to trade financial assets in a distributed manner. Saving intermediation and custody costs.

Its main characteristics are:

  1. Less commissions
  2. Decentralized
  3. Multi-asset

At first glance, registration is straightforward. And it guarantees full custody of assets. In addition, P2P commerce allows the entry of anyone and from any country. To participate in investment opportunities in Venezuela.

It should be noted that behind this new Stock Exchange is a Spanish group led by businessman Manuel Fajardo.

It is also true that he ran the Interbanex platform. A short-lived virtual currency market. That it was authorized by the Central Bank of Venezuela (BCV) in January 2019. But, that it stopped working, in May of the same year. After the approval of Exchange Agreement No. 1.

Stock Market Operations Manual

The Operations Manual even establishes in article 47. That all the Securities on the platform are configured in ERC223. ERC721 and Packable. The latter, specially designed by the BDVE team.

It also indicates that other types of electronic protocols may be approved. Depending on the specific needs of each particular asset.

Also, it is noted that it is a DeFi project. That works with Smart Contract. And multiple tokens, on the Ethereum network.

Likewise, the Manual also explains that all the participants considered stockbrokers or brokerage firms. They may be considered auditors.

By way of closing, the Official Gazette indicated:

“This platform allows the securities custody process to be individual, shielded and public.

He also added: “It has a trading system available 24 hours a day, 7 days a week. Which guarantees transparency, security, speed, reliability, traceability and lower cost of operations.

Very importantly, the Decentralized Stock Exchange of Venezuela will be in a trial period of 90 days.

Once this period is completed, the Venezuelan authorities will determine whether to grant a definitive license. Or if the ability to act within the framework of values ​​is revoked.

I am retiring, not without first leaving you this phrase from Warren Buffett: “Never invest in businesses that you cannot understand”.

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