This is a product for people who live in countries with severe inflation and are unable to protect their wealth due to strict capital controls.
If the government makes it illegal for the financial system let people store their wealth in dollars, how would they - a part of the financial system - be able to let people store their wealth in dollars?
you will be surprised, but it's all about corruption oportunities.
In venezuela right now, there's a YC startup (2023), "Kontigo" [1], who's part of it, they went all in with this "stablecoin" bullsh*t and manage to get a license to operate in US (stripe) and with Venezuelans users with absolutely NO KYC, fully connected and "licensed" by the venezuelan "National Superintendence of Cryptoassets and Related Activities" a.k.a SUNACRIP
Take note that this SUNACRIP had closed operations since 2020 when a huge corruption scandal hit the govt, they used crypto to run corruption operations and money laundering [2][3][4] and somehow SUNACRIP, an organization that is not even working or functioning, this january licensed "Kontigo" to operated in the country, the founders themselves made a bragging video on instagram about "noone expecting it", wich is hillarious, you can find the video at https://www.instagram.com/p/DFd8ouoNKuI/
Anyways, the corrupted govt, approved a YC startup to exchange instantly USDC to VEF using venezuelans banks APIs and USA banking system (plaid, stripe, etc), without any KYC, without any sanctions screening, nothing, the reason for this approval is pretty simple, they doing the money laundering process super easy for them lol, they helping venezuelan corrupts officials bypass sanctions and easy money laundering.
I'm absolutely baffled at the situation and wondering how the fuck this happened, I myself know lower/mid size venezuelan corrupt officials using Kontigo to instantly wash money into USDC, and all of this is backed by YC itself.
And inbefore any user comes here telling me that "venezuela is sanctioned" and whatever other random thing, this company absolutely doesnt help venezuelans, it only helps corruption and launder money from corruption and drugs
michaelt|1 year ago
If the government makes it illegal for the financial system let people store their wealth in dollars, how would they - a part of the financial system - be able to let people store their wealth in dollars?
dgfitz|1 year ago
Team America, world police, crypto version.
ac29|1 year ago
Or is the business plan to make it easier to do crimes?
threeseed|1 year ago
Because I fail to see how countries e.g. Venezuela are going to allow some US startup to undermine their currency and distort their financial system.
It's amazing to me that people think they can disrupt a government without them retaliating.
JamilD|1 year ago
How is it undermining a currency and distorting a financial system to allow people to exchange their OWN hard-earned money for another currency?
firekvz|1 year ago
In venezuela right now, there's a YC startup (2023), "Kontigo" [1], who's part of it, they went all in with this "stablecoin" bullsh*t and manage to get a license to operate in US (stripe) and with Venezuelans users with absolutely NO KYC, fully connected and "licensed" by the venezuelan "National Superintendence of Cryptoassets and Related Activities" a.k.a SUNACRIP
Take note that this SUNACRIP had closed operations since 2020 when a huge corruption scandal hit the govt, they used crypto to run corruption operations and money laundering [2][3][4] and somehow SUNACRIP, an organization that is not even working or functioning, this january licensed "Kontigo" to operated in the country, the founders themselves made a bragging video on instagram about "noone expecting it", wich is hillarious, you can find the video at https://www.instagram.com/p/DFd8ouoNKuI/
Anyways, the corrupted govt, approved a YC startup to exchange instantly USDC to VEF using venezuelans banks APIs and USA banking system (plaid, stripe, etc), without any KYC, without any sanctions screening, nothing, the reason for this approval is pretty simple, they doing the money laundering process super easy for them lol, they helping venezuelan corrupts officials bypass sanctions and easy money laundering.
I'm absolutely baffled at the situation and wondering how the fuck this happened, I myself know lower/mid size venezuelan corrupt officials using Kontigo to instantly wash money into USDC, and all of this is backed by YC itself.
And inbefore any user comes here telling me that "venezuela is sanctioned" and whatever other random thing, this company absolutely doesnt help venezuelans, it only helps corruption and launder money from corruption and drugs
[1] https://www.ycombinator.com/companies/kontigo [2] https://es.wikipedia.org/wiki/Caso_PDVSA-Cripto [3] https://news.bitcoin.com/how-crypto-ended-up-at-the-center-o... [4] https://www.criptonoticias.com/judicial/fiscal-venezuela-con...
unknown|1 year ago
[deleted]