News

Venezuela’s Central Bank Introduces App For Easy Conversion From Fiat to Newly Introduced Currency

Following the announcement of Venezuela President, Nicolas Maduro on the introduction of a “Sovereign Bolivar“, a new fiat currency that removes five zeroes from the value of the old Bolivar. Venezuela’s central bank has launched an Android application – The Sovereign Calculator – to help convert the Bolivar (bolivar fuerte), the main currency of Venezuela to the new crypto-pegged currency called the Sovereign Bolivar – Bolivar Soberano.
Venezuela is currently going through a 1,000,000% inflation rate as a cup of coffee that sold for about 2,300 bolivares a year ago now sells for 2,000,000 bolivares. In the effort of the Venezuelan leader to solve the problem, he devalued Venezuela’s fiat currency by 95% with the introduction of a new currency. This new currency – The Sovereign Bolivar – is backed up by a cryptocurrency called Petro (PTR) which the government created in January, 2018.
The conversion from the old bolivar to the new Sovereign bolivar has left many residents in a state of confusion as errors were being made during the conversion process. Authorities have reported the arrest of several merchants accused of charging extremely high prices while taking advantage of the chaos.
In a bid to curb this; the country’s central bank – Banco Central de Venezuela announced the launch of an Android app with the sole purpose of making this conversion easy on August 25, 2018. The announcement by the central bank on Twitter reads; “The Sovereign Calculator, a tool for everyone and all Venezuelans, is the best ally people will have to understand and assimilate the monetary re-denomination process. Download it now!”
The Sovereign Calculator (la calculadora soberana) operates simply by taking five zeroes away from the Bolivar to convert it to the crypto-pegged currency; making a 1:100,000 conversion. It has already been downloaded over 10,000 times on Google Play Store and has a rating of 4.6 after reviews from 228 people. Comunicacion Digital VE, the app’s developer, has other various apps on Google’s play store which support Venezuela’s socialite regime, as they are all about the country’s leaders and are designed to paint them as heroes. It is, therefore, no surprise that the government consulted them for this development.
The Venezuelan government still has other problems to tackle as shoppers are calculating prices of their goods using black market exchange rates which is 40% less when compared to the 60% bolivar to a dollar pegged by the government.

Related posts
BanksBitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTMarketsNewsUSAxbtusd

Bitcoin Retakes $57K As Hundreds Of US Banks Prepare To Offer Crypto Trading And Custody To Clients

Bitcoin has recouped the losses from recent sell-off after news that the world’s oldest cryptocurrency is soon coming to hundreds of United States banks. Data from CoinMarketCap shows that bitcoin is hovering at $57,091.36 at press time, with 5.47% daily…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTJamie DimonjpmorganNewsxbtusd

My Clients Care About Bitcoin, I Don’t: JPMorgan CEO Jamie Dimon

The trajectory that bitcoin has seen over the last decade has been nothing if not interesting. There was a time where it was popular among top financial executives to denounce bitcoin and declare it is a scam or fraud at…
CoinbasecryptocurrencyCryptocurrency NewsFeaturedNews

How Coinbase is Driving the Crypto Market to the Richest Fintech Hands

Not every cryptocurrency proponent is a fan of the giant exchange platform Coinbase. But if sentiments are kept aside, it is crystal clear that the platform is leading the cryptocurrency market into some of the richest hands the industry will…