Reserve is a stablecoin project with two main parts to it. There's a protocol that wraps asset-backed tokens to create basket-backed currencies, and an app that makes it possible to use the stablecoins as normal money, for ordinary transactions.
The app is seeing 15,200 transactions per day, moving $1.6 million in value each day on average. A little over 5,000 merchants are accepting payment with Reserve in Argentina and Venezuela. What's interesting about these numbers is that they are nearly 100% ordinary people and businesses doing everyday transactions, not crypto speculators. As far as we can tell, RSV (the stablecoin) has overtaken BTC as the most used cryptocurrency in Venezuela.
The initial basket-backed stablecoin is pegged to USD tokens only, so it works just like a normal USD stablecoin. The project has started off focusing on Latin America, and has started to catch on in Argentina, Venezuela, Colombia, and the US. Because Argentina and Venezuela are both dealing with high inflation, there has been the most interest in those countries. In Argentina it’s common for the currency to lose 50% of its value in a year, and in Venezuela it’s sometimes as high as 5–10% per day. So, naturally, there’s a need to save and earn in foreign stable currencies. The US dollar is the currency of choice in both of these countries. The project is working on launching an update to its Ethereum-based protocol, which will permit issuing further stablecoins backed by different token baskets, so that it can offer more than just a USD coin.
What are people buying the USD stablecoins with?
- Local currency only: 75%
- USD or combo local+USD: 7%
- They aren’t! Only getting paid in stablecoins, not buying them: 18%
How much of the monetary volume is retail versus institutional?
- Institutional: 76%
- Retail: 24%
Institutional volume is mainly businesses converting their local currency earnings into stablecoins, and then selling the stablecoins for USD which they receive in their business’s American bank account. Because they have more money, they make up the majority of volume even though they are a small minority of the customer base.
Reserve started as a silicon valley-based project, and these days has a distributed team, mostly in Latin America. Our technical and product teams are still small (12 engineers at the moment), but our customer support, operations, and compliance teams are scaling quickly to keep up with new customer growth (whole team is about 150 right now). Apply here if what we are doing interests you.
Here today to answer questions are:
- Nevin Freeman (CEO of Reserve) - /u/nnevvinn
- Gabriel Jiménez (COO of Reserve) - /u/Gabo_At_Reserve
- Taylor Brent (Lead protocol development) - /u/Taylor_at_Reserve
Ask us anything!
[AMA Closing]
Thank you all for the great questions in this AMA! We loved answering as many of them as we could in the past few hours.
Reserve is still at an early stage. We believe our journey towards eradicating hyperinflation has only just begun, and we can't wait to see what the future brings. We hope you join us on this journey.
If you want to be part of our community, here are our social media channels:
Thank you!
Nevin, Gabo & Taylor ????
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