We discussed what is taking place with the Hive Backed Dollar (HBD) and the area of Sucre located in Venezuela. This is really a ground zero case for the benefits of HBD. As we see expansion, the ability to provide stability is further increased.
It is easy to look at the world through out own eyes. The problem is we miss what others value at that point.
With HBD, there are a number of advantages to the currency. Due to problems with the Bolivar (VES), the economy suffers greatly, especially when the USD strengthens. This is something experienced by much of the developing world.
HBD provides people with an alternative. Whereas their only defense was to get banknotes, usually from the black market, we now have a digital alternative that is easily accessible. There is no need to deal go through the banks.
Getting into a USD denominated asset that can be used digitally as currency is a lifesaver. It is obvious why this is becoming so popular in Sucre.
Of course, we discussed this in the past. There is, however, a step in the evolution that is crucial. In this article we will discuss how something else is underfoot that is even more powerful.
Hive Pizza Day
Like much of the cryptocurrency world, members of Hivesucre got together for Hive Pizza day. They enjoyed the food and festivities while purchasing the food using HBD. This is a marked departure from using fiat to settle bills.
Of course, this is nothing new for the people in this region. The work this team is doing is tremendous. From a currency standpoint, this is is establishing a baseline that adds value. The blockchain provides a fast and feeless payment system and those in Sucre at taking advantage of it as the image of the transactions shows.
As we can see by this image, it was a strong turnout and all of this was paid for using HBD.
We also see from this article that the HBD was provided by @valueplan.
There were also prizes sponsored by @3speak, which I presume were also purchased locally.
From the above-linked article:
The Hivesucre community thought why we should not pay with HBD pizzas, since it is our stable currency and it is actually equal or similar to the same USDT. You do not have to be an expert or scholar in the field to know that our HBD has weight in the crypto world and that from here we are working to position it even better and add more value to it, it should be noted that this is done step by step as we have been working.
This is all serving to push HBD into the Sucre community.
Next Level
What we are witnessing is the first phase of this process. Getting currency into the area if the first step. However, this only serves as a short-term benefit if the HBD is then swapped for VES and exits the community.
We often discuss the idea of velocity of money. It is not only how much of a currency is available that is important, it is equally as important how many times it travels through the economy. For example, $100 flowing through the economy twice has an economic impact of $200. If it travels 10 times, then we are dealing with $1000.
Here is where we see Sucre taking the next step. Like anything, it is slow to start but should accelerate over time.
We have screenshots of something exciting, business-to-business (B2B) transactions. It is a merchant called Venecia Fast Foot.
This details the transaction:
There are a couple of transactions to @econoquesos. Here we see a merchant that accepted HBD as payment, then using the money to purchase other goods with the same currency.
From an economic perspective, this is how we foster growth. The resources (HBD) are fed into the region and people have the ability to spend it throughout. We see how the money multiplier, the total amount of economic activity generated from a single currency unit added, can be high in this region. When discussing basic necessities, the idea of stopping the flow of currency is not relevant. People do not have that option.
Going back to the transaction list, we see a couple to the mentioned location, one for 15 and the other 11 HBD. This is currency that was accepted as payment for goods and services, then is used to buy more goods.
And here is how economic growth is fostered by currency expansion. As long as the resources are in place to direct the money to needed areas, we can see growth. This is a prime example of it.
Now take this same concept and multiply it by 100K, involving thousands of people and businesses.
Here is where we see the potential of HBD in an area like Sucre.
It is also how Hive can impact the underbanked.
If you found this article informative, please give an upvote and rehive.
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