Venezuela Bolivar denominated, tying it to the bitcoin El Petro

Venezuelan authorities plan to replace the national currency with a new currency tied to the" oil-provided " cryptocurrency El Petro. It is reported by Reuters.

As part of the fight against hyperinflation, the level of which according to IMF experts by the end of the year will reach 1 million percent, the Venezuelan authorities will hold the denomination of bolívar. Five zeros will be removed from the national currency denomination. At the same time, earlier the country's authorities planned to reduce the nominal value "only" by three zeros. The new national currency will be called bolívar soberano ("sovereign bolívar").

"It [the denomination] will start on August 20, a new currency, a sovereign bolívar, will be issued and put into circulation," Venezuelan President Nicolas Maduro said on television. - It will be tied to El Petro — »

How the updated national currency of Venezuela will be tied to El Petro remains a mystery. It is also difficult to say whether the monetary reform will help the government of this country to cope with the raging hyperinflation.

According to the IMF representative Alejandro Werner, the current inflation rate in Venezuela is comparable to that observed in Germany after the First world war and in Zimbabwe at the end of the last decade.

Recall that in February, Venezuelan President Nicolas Maduro ordered a number of local businesses to make payments to El Petro.

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