Victor Ugochukwu · Dec 14, 2020 . 5min read
Venezuela introduces world’s first Decentralized Stock Exchange
Venezuela's decentralized stock exchange, BDVE, is DeFi project on the Ethereum network enabling traders to trade traditional tokenized assets.
By Komal Joshi · Oct 3, 2020 . 6min read
Venezuela declares the development of a decentralized exchange that utilizes digital versions of traditional financial assets and instruments. The Venezuelan National Superintendency of Securities (SUNAVAL), the state securities regulator, has declared the launch of the Decentralized Stock Exchange of Venezuela. It will enable trading of traditional tokenized assets. The exchange is known as BDVE; its website claims that it is the world’s first decentralized stock exchange. Moreover, it is a DeFi project on the Ethereum network that will be tested in the next 90 days.
The chief architect working for the platform is Manuel Aaron Fajardo García. He also helped the Maduro regime launch the INTERBANEX foreign exchange trading platform last year. In live streaming on his Instagram account, Fajardo García claims that the new platform is in the pipelines for months. However, its operators determined to keep the project under wraps until the pilot was ready for launch.
Characteristics of decentralized stock exchange
As per the government’s official legislative bulletin, the Decentralized Stock Exchange of Venezuela will enable traders to access primary, secondary, and derivatives markets for both options and futures. Moreover, it will also allow parties to carry out public offerings for securities, negotiations, transfer, custody, and settlement processes. This platform enables the securities custody process to be individual with a trading system accessible 24/7 in a week. It guarantees transparency, security, speed, reliability, traceability, and lower operations cost.
The exchange is a DeFi platform operating on the Ethereum blockchain. The traders will be capable of trading traditional tokenized assets in the form of ERC223 (an alternative to ERC20) and ERC721 (unique tokens) contracts as relevant. The purpose is to provide negotiation without a centralized intermediary.
Therefore, investors will be capable of trading derivatives, commodities, real estate, stocks, ETFs, and bonds on the decentralized exchange. Nevertheless, tokens with ridiculous food names, mysterious cryptocurrencies, or farm yields will trade. Although the government maintains it, as it wants to support all cryptos, it only acknowledges trading of traditional (tokenized) assets.
Concerning commissions or fees, the exchange’s website designates that it will be 0% for fiat money sales operations. However, it would be 0.1% for sales operations via alternative digital assets. Moreover, Fajardo emphasizes that the decentralized stock market can serve as a financing source for Venezuela’s various sectors.
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