Venezuela Is a Testing Ground for Digital Dollarization (and Zelle Doesn’t Like

[Paglamon]

Dollarization isn’t what it used to be.

When a local currency – lira, pesos, kwacha or whatnot – gets replaced by a foreign currency (almost always the U.S. dollar) the issuing nation is said to have dollarized. U.S. paper currency was once the main vehicle for dollarization.

But Venezuela, the most recent nation to undergo dollarization, has updated this framework. In addition to adopting U.S. paper currency, Venezuelans have found a novel way to digitally dollarize. Unfortunately, the providers of these digital dollars – U.S.-based Zelle and the banks that offer it – don’t seem terribly happy about this state of affairs.
Source: https://www.coindesk.com/venezuela-is-a-testing-ground-for-digital-dollarization-and-zelle-doesnt-like-it

[TomPluz]

I am not so sure but it seems to me that maybe Zelle is just afraid of any possible backlash it may receive from the US government because its platform is widely used in Venezuela. This should have been a good opportunity for the company to really shine in another country, and they can even impose a small and acceptable fee for their users abroad if they want to.

[Noverteno]

Venezuelan residents use any currency other than national money, which has almost completely depreciated due to the unreasonable leadership of the country by President Maduro.  In Venezuela, certain measures have also been taken against the circulation of the bulk of dollars.  Therefore, digitized currencies are a good way out for Venezuelan residents in this case.  Therefore, everything that is advertised and to which people have access is used there.