In late September, Venezuela launched its decentralized stock exchange BDVE. This organization is primarily based on Ethereum.
Through the National Securities Superintendency (SUNAVAL), according to Official Gazette No. 6,578 of September 29th, Venezuela launched decentralized stock exchange BDVE.
With this new stock exchange, the government seeks to counteract the social impact of the sanctions, as well as the financial and commercial blockade that the Venezuelan executive has denounced.
This is the first decentralized stock exchange in the world, whose design would aim to facilitate the distributed trading of financial assets in the country.
According to the Official Gazette itself, “the stock exchange represents a new and innovative segment of the stock market.” The document says that this organization “provides the investor with security and control over their financial assets.”
The announcement of the launch of the stock exchange occurred shortly after the president of Venezuela reported on an anti-sanctions bill. This proposal would intend to mitigate the impact of economic sanctions in the country.
The draft law noted that users could use private cryptocurrencies that the state endorses to trade beyond the scope of economic sanctions.
Venezuela and Its Stock Exchange BDVE
Stock exchange BDVE connects to national and international markets, through the Decentralized System of Encrypted Markets (SIDEME).
Concerning digital currencies, Venezuela was the first country to issue its own cryptocurrency. Its value depends directly on national oil reserves, which they called it Petro.
In 2017, the president of Venezuela announced the development and issuance of the cryptocurrency. With this, the government of the South American country sought to be more financially independent and to solve all the problems of the Venezuelan economy.
Defining BDVE
BDVE is a stock exchange that connects to the Decentralized System of Encrypted Markets. Its power would reside in the ability to trade financial assets in a distributed manner, saving intermediation and custody costs.
The record-keeping seems simple and seems to guarantee full custody of assets. Besides, P2P trading allows the entry of anyone who wants to invest in Venezuela, from any country.
Behind this new stock exchange, there is a Spanish group that businessman Manuel Fajardo leads. He directed the Interbanex platform, a virtual currency market that the Central Bank of Venezuela (BCV) authorized in January 2019. However, 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 its article 47, that all the securities on the platform have ERC223, ERC721, and Packable standards. The BDVE team specially designed the last one.
Depending on the specific needs of each particular asset, the Manual indicates whether other types of electronic protocols may obtain approval.
It is possible to observe that BDVE is a DeFi project that works with Smart Contract and multiple tokens, on the Ethereum network.
The Manual also explains that all participants considered brokerage firms may be auditors.
The decentralized stock exchange of Venezuela will be on a 90-day trial period. Then, Venezuelan authorities will determine whether granting a definitive license or revoking the ability to act in the securities framework.
Of course, users should keep in mind that they should never invest in businesses that they cannot understand. For that reason, they should do their research work before risking their funds.
By Alexander Salazar
