Government of Venezuela This Friday announced a new currency change, the third of this century, which will take effect from October 1 and will remove six zeros from the current sovereign polivar to illuminate the digital polivar.
From October 1, 2021, Digital Bolivar will come into effect, using a currency that removes six zeros from the national currency. In other words, all the money and all that comes out of the national currency is divided by one million (1,000,000) ”, Communications Minister Freddie Chess reads a report by the Venezuelan Central Bank (PCV).
In 2007, Venezuela underwent its first restructuring process By removing three zeros from a strong Bolivar coin. In 2018, there was another process that ended with the birth of the current Sovereign Bolivar, which removed another eight zeros from the currency.
The report adds to that “This change in monetary scale” “based on the depth and growth of the digital economy” In Venezuela And considers it “a necessary historical milestone as the country embarks on the path of economic recovery.”
Despite this, it contains a Bolivar coin and bills of 5, 10, 20, 50 and 100 Bolivar, all with the face of the liberator restored in 2012 and a reference to the Battle of Karabopo, the key to independence, the reverse.
“The introduction of the digital bolivar does not affect the value of the currency, i.e. the value of the bolivar does not increase or decrease, only a simple amount of money is made to facilitate its use.”, Add information.
Its purpose is to “maintain inclusion” of all Venezuelans and to meet their transaction needs across the national territory.
Therefore, they insist that the PCV “continues to participate in the release of Bolivar in its physical manifestations”.
“Global Bolivar and Digital Bolivar will be the expression of our economy aimed at restoring their strengths and their scale” Add information.
Due to the devaluation of the current sovereign Bolivar, the rupee notes have virtually disappeared because the largest denomination is about 25 coins worth one million Bolivar dollars.
Because of that, Venezuela The transaction lives the dollarization process, so the US currency is the majority when it comes to paying with cash.
If you want to pay in Bolivar, most of the money will be paid by card or through automatic transfers through a site called Mobile Payment.
However, one of the biggest problems with this type of payment is due to the poor internet service in the country, which in many cases makes it impossible to make payments and even use databases on these sites.
BCV further states that “the exchange rate of reference will be determined by the Venezuelan Exchange Market System.”
Finally, the modernization of payment methods “aims to immediately expand the use of digital Bolivar so that transfers between customers of different banks can be obtained in a matter of seconds with the highest international standards.”
“In conjunction with the PCV, the government will continue to protect and guarantee monetary sovereignty in order to make our country’s independence invincible against local and foreign factors attacking Venezuela and to promote the recovery of our economy.”
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