Dash is used to pay salary bonuses in a Venezuelan chain
The initiative aims to encourage greater simplicity in the way Venezuelans pay and to solve exchange rate problems. Many Venezuelans see cryptocurrencies as a way of escaping the country’s chronic inflation. Dash has become an important part of Venezuelan society, competing with Bitcoin.
Dash
Source
Dash will therefore be used to pay bonuses to Venezuelan employees using domestic technology. All within a legal infrastructure that has also been 97% accepted by the staff receiving these bonuses. We are therefore witnessing a milestone for cryptocurrencies. The question is whether the country plans to pay all salaries in this currency.
Dash has confirmed, that since December 2020, it has implemented, in Church Chicken Venezuela, a pilot of the first system for paying bonuses to company staff. The success of the project was announced on 19 April. The test was 97% validated by the staff who used it, opening the door to an extension of the system from April 2021 within this commercial chain and in new chains.
Leidimar Amundaraín, Director of Human Resources at Church’s Chicken Venezuela, said:
“This strategy has served as a solution for our staff, as well as being a system that has made it easier internally to make this payment, both for the practical aspect of the programme and for the advantage it represents for the employee to receive payment using this method. We were the first chain in the country to accept Dash, and we are delighted to extend this alliance by working with Dash to implement this payment system”.
How does paying wages with Dash work?
To set up this system, the Dash Text and Dash Core Group teams worked together with the aim of having some of Church Chicken’s staff receive a share of the commission they earn in cryptocurrencies. This process is in addition to legal payments, in strict compliance with Venezuelan law.
It’s all done quickly and easily, using a payment programme called Dasherpay, developed by Dash Text. The bonus can be distributed simply by including the employee’s details, wallet address, amount and date of payment on the website. The transaction is then carried out automatically, with employees receiving the money exactly on the day defined by the transaction. To do this, the system generates a notification to the person responsible for the payment and the funds are distributed with a single click.
Ryan Taylor, CEO of Dash Core Group, said:
“In Venezuela, studies have shown that around 60% of daily transactions are carried out in cash, particularly in dollars, but the migration to this currency has created the problem of a lack of low-value banknotes. This causes problems for shopkeepers who can’t give change, or it generates higher expenses for users, who have to make full use of a note. By using digital currency, we have found that users are able to reduce their problems by more than 90%, as they can buy whatever they want in the thousands of shops that accept Dash in Venezuela, paying the exact amount in fractions of a second”.
One very important aspect is that their system works in a non-proprietary way, so that the HR organisation that wishes to use it can buy its Dash on the exchange of its choice and then route the payment through DasherPay. This solution enables organisations to digitise part of the payments to their staff, who benefit from the advantages of digital currency. The company can also ensure that it remains compliant with the legal regulations in force in the country.
Why is Venezuela using cryptocurrencies as a means of payment?
Like any new technology, there is an incubation period for everyone to get used to it. What’s more, many people react with rejection or resistance to the new thing. However, many Venezuelans have long been accustomed to using cryptocurrencies. This is imposed by the government, but it is also motivated by their desire to escape from an unequal system that impoverishes them every day. The country is therefore turning to bitcoin and other cryptocurrencies as a refuge from inflation.
Dash
Source
The launch of this initiative is a response to two factors of great importance to the people of Venezuela:
Inflation: the need for Venezuelans to safeguard their income in a currency that allows them to escape the problem of inflation.
Simplicity: the need to offer individuals and businesses a simple and immediate solution to the problem of the lack of simplicity and change in banknote transactions.
Saradei Mulato, receptionist at Church Chicken, commented:
“At first it was received with doubts because cryptocurrency issues are complicated for most people, but after making the first payment and seeing that even the cashier at the supermarket found it easier to charge me in Dash than in dollars because there is never any change, I felt more confident because it really is very easy to pay with cryptocurrencies, and in the case of Dash, it is very quick and cheap to pay, so I can save time and money.”
Conclusion
Here we see a good example of the use of cryptocurrencies in response to inflation. This breakthrough in Venezuela will therefore provide an opportunity to see the capacity of these digital currencies to become safe havens in the event of a crisis.
See also the article: Bitcoin will replace the US Dollar in 2022!
