- Venezuela set to create decentralized stock exchange on Ethereum network
- The exchange will allow traders to transact tokenized versions of traditional assets on Ethereum
- The new exchange is a DeFi platform that will run on the Ethereum network
Ethereum News Today – Venezuela has continued to find ways to defend itself against U.S sanctions and its crippling finances. The country is experimenting with decentralized technology Venezuela has decided to launch a decentralized stock exchange. The new exchange uses digital versions of traditional financial instruments and assets.
President Nicolás Maduro of Venezuela gave the announcement about the exchange and the creation of the Anti-blockade Law for National Development and the Guarantee of Human Rights. The new law outlines the strategies designed to stimulate the national economy (which has been hit hard by seven different executive orders from the United States along with over a dozen additional sanctions).
Venezuela’s New Anti Sanction Legislation Exposes Miners to US Sanctions
The recent decision of the Venezuelan government to regulate Bitcoin mining has given the government a monopoly over the digital asset industry alongside its associated components. According to the president, the new legislation promotes the use of crypto (all digital assets. Not just the state-backed coin Petro) to protect the financial sovereignty of Venezuela. He said:
“The new anti-sanctions law is reportedly the first response to give strength to the Petros and other cryptos (both national and global), in domestic and foreign transactions. All cryptos worldwide, both state-backed and private, can be utilized.”
Despite the county’s love for implementing a centralized administrative procedure, the new stock exchange appears to be as decentralized as possible. It is structured within the legal framework. According to the government, all protocols and contracts are public and auditable. Participants will own their own tokens and keys.
The New Exchange is a DeFi Platform That Will Run on Ethereum
The new exchange is a DeFi platform that will run on Ethereum’s Blockchain. It will allow traders to exchange tokenized traditional assets (ERC223 contracts an alternative to ERC20) and (ERC721 unique tokens) as the case may be. This will make way for transactions without any centralized intermediary. Investors will have the opportunity to trade commodities, real estate, stocks, derivatives, ETFs, and bonds on Ethereum. Even though the authorities have announced that it wants to promote all digital assets, the platform will only trade tokenized traditional assets.
Via a Livestream, one of the project’s leaders Manuel Aaron Fajardo García said the exchange will be independent of the traditional system. He also added that the exchange will have a P2P (peer-to-peer) secondary market. It is still too early to tell whether the primary goal of the project is to improve financial activity or draw in foreign investment. However, the news will benefit Ethereum.