Venezuela held one of the largest denominations of the national currency in the history of the economy, removing five zeros from the notes. Since August 20, 2018, a new “sovereign Bolivar” has entered into circulation, whose rate is henceforth tied to the cryptocurrency Petro, provided by the country’s oil reserves.
Old Bolivars will temporarily remain in circulation until citizens are completely accustomed to the new bolivars, and old bills will not completely disappear from everyday life.
According to users of the social networks, before the denomination the cost of 1 hen weighing 2.4 kg in the country was 14.6 million bolivar (or 2.22 $).
As for the petro, the cryptocurrency has been given the official status of a “crypto active, supported by the Venezuelan government, which is fully provided with Venezuela’s national oil reserve.” The issuance of this national currency is carried out by the central bank of the country: in total, 100 million Petro-koins will be produced on the basis of the NEM blockchain. According to the government of the country at the moment, a re-issue is prohibited.
Despite the fact that the price of a Petro-coin should be correlated with the cost of Venezuelan oil, its real market value is still not clear. According to the government, the cost of the 1 Petro-coin for the current period is 3,600 bolivars or $ 60, taking into account the new exchange rate.
Recall also that in the next 35 days in Venezuela in the financial reform will be launched Cryptocurrency Central Bank.
Venezuelans, despite the enthusiasm of the authorities, are not at all inclined to trust the potential of the national cryptocurrency and continue to massively buy bitcoins.