A new Venezuelan fiat currency, ‘anchored’ to the nation’s crypto, the Petro, is expected to start circulating in the second half of August. The news was announced by president Maduro himself, along with other measures intended to improve the economic situation in the country. The ‘Sovereign Bolivar’ will have less zeros than the inflated ‘Strong Bolivar’.
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Pegged to the Petro? Bolívar Soberano Said to Bring Hope to Venezuela
Bolívar Soberano (Sovereign Bolivar), the new Venezuelan currency claimed to be anchored to the national cryptocurrency, the Petro, will start circulating on August 20, president Maduro announced on state TV. The Sovereign Bolivar will have five zeros less than the current, highly inflated “Strong Bolivar”, or Bolívar Fuerte (VEF), which replaced the original Venezuelan bolívar (VEB) about a decade ago. As for the oil-backed El Petro, Nicolás Maduro promised that the state-issued crypto “will end up being consolidated technologically and financially” to “permeate all the national and international economic activity.”
“The economic reconversion will start on August 20, definitively, with the circulation and issuance of the new Sovereign Bolivar, the new monetary cone that is going to have a new method of anchoring the Petro,” said the Venezuelan head of state, as quoted by the Telesur television network. The measure, president Maduro added, will serve “to stabilize and change the monetary and financial life of the country in a radical manner.”
Maduro went on to emphasize that a “productive, diversified and sustainable economic model must definitely be born” in the South American country, which has experienced hyperinflation and struggled with deep economic woes for years. The socialist leader stressed that the reconversion and the anchoring to
