A startup in Colombia, Valiu, has launched a new synthetic asset to help Venezuelan citizens combat hyperinflation. Valiu Chief Executive Officer (CEO) Simon Chamorro revealed the plans for the asset, called ‘cryptodollar’ in a tweet on April 23, which is currently in the alpha stage.

The purpose for the asset is to help Venezuelans use a stable asset to send money back home, with Chamorro saying that Venezuelan migrant workers in Colombia will be aided by cryptocurrencies - as opposed to traditional remittance services, which could result in losses in short time spans as a result of the hyperinflation.

While the synthetic asset is backed by Bitcoin, users can top up their wallet by depositing cash at one of Valiu’s remittance partners in Colombia, which number in the thousands. This makes it easy for the non-tech savvy to work with the asset.

The app’s functionality has already been demonstrated, as seen in this video by early investor Sid Ramesh, who had a dollar sent to him from Chamorri via the app. Users’ funds are stored in a mobile app, which can then be used to send funds back home as it would on any wallet.

Venezuela has experienced high levels of inflation over the past few years and many have turned to cryptocurrencies to combat it. On many occasions it has been reported how Bitcoin and other cryptocurrencies have allowed citizens to simply be able to purchase food and basic necessities. 

The acceptance of cryptocurrency payments among merchants, which has received a very warm welcome, has been highlighted as an example of the benefits of cryptocurrencies. 

Meanwhile, Venezuela’s own oil and mineral backed cryptocurrency, the Petro, has not been faring well, even before the recent tanking of oil prices. The asset has been at the receiving end of much criticism, seeing little adoption.