The correct conversion to the new Sovereign Bolívar can now be verified through the Android application launched by the Central Bank of Venezuela.
Venezuela's ongoing economic crisis could mean inflation will reach 1 million percent this year, rendering paper money effectively worthless.
Nicolas Maduro is trying to stop hyperinflation by all possible means, including using his cryptocurrency “petro” as the official unit of account.
Last week, the president announced a new currency, the “sovereign bolivar.” Adding to the confusion, Maduro noted that he plans to link wages, prices and pensions to the Petro, a cryptocurrency announced by the government back in February, but which has never fully taken effect in the country.
According to the president, one Petro (PTR) is equal to 60 US dollars or 3.6 thousand Sovereign Bolivars, and a single exchange rate will be calculated in the future.
Today in the country, the largest old the paper note is 100,000 bolivars, but it costs only 3 cents on the black market. One cup of coffee costs more than 2 million bolivars, although this amount is increasing every day. The new currency will have two coins and paper notes ranging from 2 to 500.
Last Monday, banks across the country closed in anticipation of the launch of the “sovereign bolivar.” The old and new currencies will remain in circulation together during the transition period, so the coming period promises to be very confusing for both consumers and the business sector.
Apparently to make it easier, the Central Bank of Venezuela has launched an Android conversion app. The Calculadora Soberana (Sovereign Calculator) application converts the old national currency (Bolivar) into the new currency - Sovereign Bolivar. The essence of the entire conversion is the absence of 5 zeros in the new currency, so the application is not designed for intricate calculations, but rather is in the nature of psychological support designed to help Venezuelans adapt to innovations.
The application can be downloaded through the Google Play store, where it has a rating of 4.7 and over 10 thousand downloads.
The developers of the service, traditionally, were the government-supported company Comunicacion Digital VE..
Despite Maduro's best efforts, most economists warn that none of the Venezuelan government's efforts will address the underlying problems and will likely worsen the existing crisis.
You May Also Like
The Impact of Cryptocurrency and China on the Peaceful Island Presidency
On Monday, November 12, following political debate over the issue of cryptocurrency and China's alleged plan to seize the coral island of Rongelap, parliament voted to declare a vote of no confidence in the President of the Marshall Islands, 67-year-old Hilda Hein, the only female president of the Pacific region. However, the votes were divided 16/16, and the president's opponents lacked one vote to achieve their goal.
The EDB proposed creating a single settlement currency in the EAEU
Chairman of the Board of the Eurasian Development Bank (EDB) Andrey Belyaninov said at the international media congress, which is currently taking place in Almaty, Kazakhstan, that the EDB is considering the possibility of creating a single regional unit of account in the Eurasian Economic Union (EAEU), and it is possible that such a unit could become a cryptocurrency.
