Venezuela’s central bank has finally announced the launch of the central bank’s digital currency or CBDC will take place this October.
They also said there would be a change in monetary value where six zeros were deducted from the currency following the strengthening of inflation.
Starting October 1, the digital bolivar will be implemented in the Venezuelan economy. The cash will be available in 1 new bolivar coin, including 5 Bs. Up to 100 Bs. as a result of currency restructuring.
However, it does not mean that it will also influence the value of the bolivar. The central bank explained, “The Bolivar will not be overvalued or undervalued. It is only brought to a more modest monetary scale.
The launched CBDC will also be accompanied by the presence of a messaging system to facilitate payments and transfers between its users.
The establishment of the digital bolivar arose last February by President Nicolas Maduro. The introduction of digital currency is aimed at rebuilding the Venezuelan economy.
Maduro himself is already familiar with digital currency because he had previously launched the oil -based Petro coin in 2018.
In fact, even before this Maduro had cut five zeros in the currency in 2018 when inflation was at its peak with a record 1.8 million percent.
