Cryptocurrencies have received an incredible amount of hype over the past year. Many people have invested in cryptocurrencies seeking to capitalize on lucrative gains. But the common investor fails to realize that cryptocurrencies were actually born from digital currencies.
The creators of these digital currencies have a much larger vision for their projects and see them as a way to revolutionize the global financial system. Ven Currency is a digital currency that has been in existence for over a decade. Released by Hub Culture on July 4, 2007, Ven Digital Currency is considered one of the pioneers that have long been on the forefront of the digital currency revolution.
What Are Digital Currencies?
Digital currencies are currencies that have no physical presence or backing but otherwise have the traditional characteristics of money. Just like traditional money, digital currencies can be transferred, exchanged, and obtained.
Whereas traditional money is backed and funded by government institutions, digital currencies know no borders, be it political or geographical. If you wish to use fiat money in another country, you are often required to exchange your native currency to the foreign country’s currency, paying exchange rates along the way. Digital currencies eliminate this problem, making it possible to pay anytime, anywhere.
Ven Digital Currency is widely considered one of the fundamental building blocks of the current cryptocurrency craze. Cryptocurrencies like BitCoin were made possible because of Ven Digital Currency. Digital Currency Perspectives once compared BitCoin and Ven, describing BitCoin as a rebellious youngster while describing Ven as the “environmentally friendly adult with a savings account.”
Stan Stalnaker is the founder of Hub Culture and Ven Currency. He originally founded the currency as a way to solve internal problems within Hub Culture. The company was facing high sale fees and exchange rate fees. Ven Currency was created as a way to counter this. Now, users are able to send and receive digital currency within the HubCulture.com network without having to pay any transaction fees.
Stalnaker has made a point to create a currency with a strong foundation that operates within existing international financial regulations. Stalnaker’s desire for a strong foundation resulted in a currency that is backed by assets.
This is one of the main differences that sets Ven apart from other cryptocurrencies. Cryptos feature a ledger that is decentralized. They are held accountable by the community-at-large, as there is no other form of supervisory authority. Cointelegraph elaborates on decentralized databases and their relation to cryptos.
Ven, on the other hand, is backed by underlying assets including
- Other Currencies
Ven’s backing is similar to when the United States dollar was backed by gold. Hypothetically, you could trade a nominal amount of currency for the fair market share of the underlying asset. Underlying assets are combined to diversify Ven’s inputs, thereby creating a diversified asset. The price of Ven is controlled by an algorithm that considers the price of the diversified asset.
Although it was initially created as an internal payment method, Stalnaker has said that Ven Currency has since grown to be a reliable solution for anyone operating in financial sectors, especially those conducting business online.
The Legality of Ven
One of the biggest cryptocurrencies concerns their legality. Many companies have sought to regulate them or shut them down entirely. The United States Government recently made a move to begin cracking down on people who owe cryptocurrency taxes.
Ven has made it a point to operate legally. Their firm structure and operation is entirely legal. The main reason for this is because the company forbids public “cash-outs.” Cashing out a digital currency is what leads to criticism, government regulation, and tax regulations. Regulatory partnerships are required if a company wishes to offer a cash-out option.
Payments with Ven
Ven Money payments can be sent from a mobile device, tablet, or computer. Ven offers a service similar to other peer-to-peer networks like PayPal, Venmo, and Square Cash. When paying with Ven, users simply select a contact from their phone or enter an email address of an individual they’d like to send Ven Money to.
It takes less than a second for a transaction to complete. The company also says that it can take less than a minute to complete a transaction from the time you log in to your account to the time the transaction is received. If the recipient has yet to sign up for Ven Money, they’ll have to do so before accessing their funds.
Ven also allows users to maintain liquidity accounts. These accounts feature enhanced trading privileges and dedicated account management. Institutional purchases are managed via fiat currencies. Payment information and addresses can be found here.
Funds in accounts can be used to purchase tangible goods and services that are offered in the Hub Culture store. The Hub Store features everything from Beverages and Snacks to Contemporary Art.
Ven’s price will show slight fluctuations based on the performance of the underlying assets. In a way, it could be compared to the stock market. The performance of individual stocks will determine the overall value of the exchange. There is nothing the exchange can do to control this. Ven Currency operates in the same manner. They cannot arbitrarily set the price of their currency.
Ven’s website claims that over the last four years, their currency has been 50% more stable than fiat currencies. They also state that their currency offers significantly less volatility than carbon credits and other commodities.
Part of the reason Ven is relatively unknown compared BitCoin and other cryptocurrencies is that the company decided early on that they would sacrifice media exposure for stability. Hub Culture has been more focused on revolutionary change and a positive social impact, which often comes at the expense of attention and headlines.
Ven’s strong foundation also helps the currency mitigate inflation risk. Stalnaker has said that inflation is controlled because of the currency’s reserve funds. The only reason Ven Currency is exposed to any inflation risk at all is that the company hosts other currencies in its underlying asset basket. If it strictly hosted commodities, inflation would be slow or nonexistent.
According to Stalnaker, Hub Culture does not make a profit on Ven Currency. He has also said that trading it or acquiring it does not carry any pricing costs. The currency’s operating costs are covered by sales margins through their stores.
The price of Ven is live-updated, but only to those who own the currency. The company has stated that the accuracy of real-time updates is within .1 seconds. Ven Price is available to the public through the company’s API. The public API price is updated every hour, instead of in real time.
There is also a database of Ven rates relative to other popular currencies. The site also includes price charts, which allows for historical analysis and comparisons. At the time of publication, some rates for 1 Ven include
- CARBON = .013822538345786
- BTC = .0000061115914054908
- USD = .094627661922698
The Ven Price is also available on Thomson Reuters terminals. Since 2011, Thomson Reuters has published exchange rates for Ven, relative to other currencies.
Hub Culture is also very proud of the fact that Ven Currency is environmentally friendly and helps nature. Stalnaker has said that the Earth is aided directly every time someone uses Ven Currency.
Back in 2015, the company was attempting to write a social contract into the currency that reflected its environmental friendliness. At the time, Stalnaker said that this was comparable to the social contract citizens enter with their government. By using a government’s fiat currency, citizens are granted access to goods and services like water and infrastructure.
The company continues to invest in carbon futures as the currency’s scale continues to grow. As the currency purchases more carbon futures, demand will increase. As demand increases, it’s reasonable to expect the cost of carbon futures to increase. As the price increases, there is a greater incentive for carbon emissions to be lowered.
This is part of the company’s long-term plan to invest in the environment, which they consider their form of a social contract. Digital currencies struggle to offer social contracts because they have nothing to provide to their customers other than the mechanism of exchange. It’s impressive that Ven Currency has made environmental sustainability a focal point of their currency.
Ven has said that Hub Culture members have helped protect over 25,000 acres of the Amazon rainforest. This was made possible because of the amount of carbon the Central Ven Reserve has acquired over the past decade. The company has a goal to create a fund for nature that values over $1 billion. Ven believes that in the future, this fund will be used to invest in clean energy methods.