Greetings to all my followers and dear readers, today my topic will focus on the possible monetary reconversion that according to many voices will be presented in Venezuela soon and it is nothing more than the elimination of six zeros to the national currency.
According to a report by the Bloomberg chain, the decision to remove six zeros from the national currency (Bolivar) has already been taken, but the official entities have not yet made the pertinent announcements on this subject, the truth is that in Venezuela there is a well-known saying that goes "when the river sounds it is because it brings stones", meaning that the news has been heard and it is true, when the information is confirmed by the Central Bank of Venezuela (BCV) 1,000,000 bolivars will become 1.00 bolivars.
If this news is confirmed, which according to many will be in the coming weeks, this would be the third monetary reconversion to be carried out in Venezuela since 2008 and the second in just three years, the purpose of this new reconversion is to facilitate electronic transactions that Venezuelans perform daily such as tax calculations, process transactions and determine incentives, all this is presented in the inflationary process that has decreased the purchasing power of Venezuelans.
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This measure would have been requested quite some time ago by the business sector of the country, in order to be able to carry out their operations in a less cumbersome manner, although it is true that in March the BCV put into circulation a new monetary cone that would help to facilitate these operations, the companies did not see this measure as sufficient. The bills that circulated were of the following denominations: 200 thousand, 500 thousand and 1 million bolivars, the latter at present equivalent to 0.30 cents of a dollar.
In conclusion, if this new monetary reconversion is confirmed, it would be confirming even more the great hyperinflation that Venezuela is going through and that impacts directly and significantly to the Venezuelan society, that is why more drastic measures must be taken, such as what several companies have begun to do, which is to pay their workers with cryptocurrencies so that their income is not affected, in short, to migrate definitively to Blockchain technology that offers so many benefits.
Hi @carlir
In relation to this subject, I understand some basic technical, economic and political considerations. Can you imagine that in the face of the galloping inflation in Venezuela the first two monetary reconversions would not have been carried out, in that case how would the expression in zeros be to define a denomination in bolivars, I consider that the monetary reconversion is necessary, and more so if there are external factors that the Venezuelan state does not control. It is very true what you say, Venezuela should take the path of El Salvador and definitely migrate to Blockchain technology and accept Bitcoin as legal tender.
Best regards, be well.
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Greetings friend @lupafilotaxia, your comment is very accurate because cryptocurrencies are the way of salvation that any country submerged in a destroyed economy product of decisions outside the people who run the country in question, but these people are the ones who must seek mechanisms to address that situation.
Thank you for your comment.
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@tipu curate
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Upvoted 👌 (Mana: 4/6) Get profit votes with @tipU :)
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All worried about the devaluation of the bs and the $ in Venezuela is impossible to save , ups I forgot my satochis jejejej Long live the cryptos!!! and this government to take 10000 0 if they want, but my wallet nobody touches it that's why I love decentralization.
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Greetings @diego1306, very true in Venezuela it is very difficult to be able to save but not impossible, even more so with the arrival of cryptocurrencies with them a window opens at the end of the tunnel.
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Hi @carlir
These measures are clear proof of the serious economic problem that exists in my country, the galloping and excessive hyperinflation is evident in this constant action of the change of the monetary cone, to give a momentary solution to the management of money.
Regards.
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Hi @janettyanez, certainly this measure further evidences the serious economic crisis in which our country is, therefore cryptocurrencies can become a perfect ally to get out of this crisis.
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Greetings friend @carlir, the issue of the monetary reconversion, is something controversial in Venezuela, for most it is a bad thing, because they see it as an engine to generate more inflation, while there are positive parts, such as the need to reduce the amounts, for example when you go to buy a kg of meat no longer tell you are 13,000,000.00 Bs, you need 13 bills of the highest denomination in the country just to buy that, and although it does not stop inflation, it avoids more money printing.
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Greetings @chucho27, your comment is very correct, but from an economic point of view, eliminating zeros from the currency is synonymous with inflation and this is what is hurting.
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Greetings @Carlir, The economic situation in Venezuela if we analyze it is unique in the world and also breaks all existing economic theories. Eliminating 6 more zeros to the currency is necessary since Hyperinflation is galloping daily and some figures are already difficult to cancel with the existing monetary cone and also for some administrative, banking and financial systems. Although it is not the definitive solution, it allows to give a little more time to find a better economic solution for the country and cryptocurrencies is one of them. Let's hope they can break the kidnapping that Petro has by a small group that uses it for their personal interests because it could be a solution.
Thank you very much for sharing your publication
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Greetings friend @dgalan, certainly the elimination of zeros to the currency will facilitate operations and that is why this initiative comes from the business sector, but if the underlying problem is not solved in a few months will have to make another reconversion, because at the rate we are going is what will happen.
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greetings friend @carlir, it is impressive how Venezuela every day has gone a little further to the bottom, all strategies that can be done to try to improve the economy or at least financial transactions, are welcomed by the business sector and the public in general.
but my big doubt is, doesn't hyperinflation increase even more with a monetary reconversion? i say this because i understand that with a reconversion, the current bills go out of circulation and therefore a new monetary cone must be printed, an action that leads to evaluate all reserves and all economic collateral that supports the amount of bills printed, at least that is what can be observed in the fundamental principles of economics.
thanks for sharing this excellent article with us my friend.
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It is a pity that they keep printing new cone money that ends up lying on the street, since printing that money costs a lot. I agree with you that we should get fully into the Blockchain cryptocurrencies.
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