With inflation projected to reach 1 million percent this year, Venezuela’s economy is a disaster. So the government is turning to cryptocurrency to bail it out.
Specifically, President Nicolás Maduro said that as of Aug. 20 there will be a new currency in the South American country, the bolívar soberano (sovereign bolivar), anchored to its petro cryptocurrency, according to local media.
The measure, the president said, will serve “to stabilize and change the monetary and financial life of the country in a radical manner starting Aug. 20.”
According to Reuters, to create the new currency, the OPEC member had to remove five zeroes from the old bolivar currency rather than the three zeroes originally planned. Read more here.