Magaly perez
Caracas.- The Decentralized Stock Exchange is a new investment option that arrived 24 days ago, when the National Superintendence for Securities authorized it for a trial period of 90 days through an administrative provision.
The information was provided by the financial analyst and vice president of the new Decentralized Exchange (BVD), José Ignacio Guarino, through an interview for VBC, who explained that despite being decentralized, it is an exchange authorized by the regulatory body and respects legal requirements, is subject to scrutiny by the securities regulator in Venezuela, which builds confidence in its legality.
He explained that this circumstance is important because “beyond the myths, that there is no rule of law in Venezuela, etc. there is the point that if authorized by the National Superintendency for Securities, distrust is lost, as it is subject to the Securities Market Law “.
On the other, Guarino assures that the new BVD will neither intervene nor compete with the Caracas Stock Exchange, “this is part of a market with stocks”, he explained.
He also indicated that this decentralized stock exchange is opening in Venezuela, and it was Manuel Fajardo the president who created the application through which you enter the BVD, called Primarket.
This application is the interface that connects to the transactional system where you see the buying and selling positions of the decentralized stock market.
Why in Venezuela?
According to Guarino, it is known that the harvests that occur in Venezuela do not occur anywhere in the world.
He explained that for Venezuelans who are out of the country who think doing business in Venezuela is complicated, with this option it’s super easy.
He also referred to SMEs and stressed that “Venezuelans are known to be entrepreneurs and when you see it and realize that there are more than 5,000 SMEs (between 50 and 100 workers) looking for funding, here is a business niche that it has not been addressed, or because it has not been heard, or it has not been made visible, or perhaps it has brought us the old paradigms that we have in terms of financing or the stock market. And the decentralized stock market is a niche-based initiative. business and identification of needs “.
Here the ideologues of this institution were conservative and identified an important need.
What is the stock market?
The specialist explained that a stock exchange is the physical or now dematerialized electronic place in the world of virtual connections where suppliers and applicants are located, i.e. the market, i.e. the stock exchange, is the maximum expression of the secondary market where it is located. It gives liquidity, i.e. the price is formed through offers and requests for securities.
Guarino also explained that in Venezuela we have variable income, which are stocks and debt securities, commercial papers, which are monetary policy tools that last up to 360 days and we have obligations.
However, the reader may wonder why we don’t call them treasury bills or bonds? Guarino explains that this is because in Venezuela only the government is the one who has the power to issue treasury bonds through the Central Bank of Venezuela, or bonds through the National Office of Public Credit through the Debt Act. .
Some features of the BVD
As indicated by the financial analyst and stock market expert, this new option is characterized by the following:
-The Decentralized Stock Exchange is based on Blockchain technology, which is a super safe and incorruptible technology.
-In BVD they can come and invest without going through Wells Fargo or Bank Of America or another foreign bank
-It attracts the attention of two main niches, the first is that of the millennia because the whole process is digitized and the second is represented by SMEs for their financing needs.
-It allows you to have cryptocurrencies, yuan, dollars, yen, euros and any type of currency as a payment method to pay and buy publicly traded securities, explained the analyst.
Another advantage is that Venezuelan and foreign investors who are abroad can come, which has been complicated by the issue of sanctions, Guarino said.
He explained that any citizen can be a shareholder in the stock market, an opportunity that the decentralized stock market will give to citizens and SMEs in need of credit.
What the citizen needs to be clear about is that what is bought is a guarantee backed by the tanker, corn, gold, etc.
He also pointed out that this exchange will give us the opportunity to invest from anywhere in the world, in the stocks that will be traded there, in small companies such as SMEs, Guarino said.
The stock market also serves to standardize product prices based on supply and demand, for example Venezuelan cocoa which is priced more expensive than any other, because it is distorted.
How does the BVD work?
The Decentralized Stock Exchange is already operational there are derivatives on diamonds, gold jewelry that works as a commodity, it is a metal that must be worked in order to be able to exchange it, in November there are derivatives of corn.
Guarino explained that each company has changed their way of planning, for example they first issue debts and then if they can issue shares. But today Guarino says they prefer to issue debt, which gives them a tax shield, while issuing shares is equivalent to delivering shares and letting out capital.
Steps to register with BVD
It’s very simple, says Guarino, first it is registered by the primarkets application, where the data is entered, she absorbs it in form and substance and releases and sends him a card, which means that it has already been created on the platform.
From that moment the user can begin to “search” within the platform and see the titles that are there, their value, who offers and who asks.
recommendations
In the expert’s opinion, the BDV must have brokerage firms acting as custodians and investment advisers.
People need to familiarize themselves with the processes to succeed, research, participate in their investments, ask questions, discover.
According to the analyst, “the Caracas stock exchange, the decentralized one and the agricultural one must be complementary and must sit down and agree on the actions to be taken to bring resources to Venezuela”.
