Venezuela Announces Decentralized Stock Exchange Built on Ethereum

The Venezuelan National Superintendency of Securities (SUNAVAL) has announced the launch of a pilot for the Decentralized Stock Exchange built on Ethereum. This happened shortly after President Maduro announced a new bill that would help to obtain resources that Venezuela requires which were taken away because of US sanctions, which transpired on the first day of October.

Ethereum-Powered Stock Exchange

The newly-established exchange will enable traders to purchase and sell tokenized variants of conventional assets on the Ethereum blockchain. The principal architect of the platform is Manuel Aaron Fajardo García, who also advised the Maduro government to launch the INTERBANEX foreign exchange platform in 2019.

Yesterday, President Nicolás Maduro announced the conception of the “Anti-blockade Law for National Development and the Guarantee of Human Rights.” It describes different approaches to spur a national marketplace that has been troubled by various US sanctions. BTC Manager had previously reported several cases where U.S. sanctions have brought impediments to crypto adoption in the country. Recently, Paxful was forced to leave Venezuela to abide by United States laws.

The exchange is called BDVE and according to its website, the platform includes “the first decentralized stock exchange in the world.” It states that users will be capable of using the exchange “from anywhere in the world” and “without restrictions.” Both fiat currencies and “alternative digital assets” will be exchanged on BDVE. Interestingly, the handbook does not specify whether Venezuela’s oil-backed state cryptocurrency El Petro will be employed by the exchange.

The Exchange Will Allow Primary, Secondary, And Derivatives Markets

The exchange is a DeFi platform operating on the Ethereum blockchain, where users will be allowed to exchange tokenized conventional assets in the structure of ERC223 contracts and ERC721 depending on the situation. The rationale for executing so is, apparently, to support trading without a centralized mediator.

As per the government’s formal juridical announcement, the Decentralized Stock Exchange of Venezuela will enable traders to obtain primary, secondary, and derivatives markets for both securities and futures. It will also enable people to provide public contributions for securities, agreements, substitution, administration, and settlement methods.

The proposal, which is currently being examined by Venezuela’s National Constituent Assembly, perceived that both private and state-backed crypto assets could be utilized to carry trade surpassing the scope of U.S. sanctions.

Notwithstanding Venezuela’s passion for remarkably centralized bureaucratic systems, this new stock exchange is as decentralized as feasible within the prevailing constitutional structure. The government assumes all contracts and rules are unrestricted and auditable, and members will clearly own their own keys and tokens. 

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