Six less zeros than paper money? Venezuela will promote the use of digital currency from October

According to the Russian Satellite News Agency, the Central Bank of Venezuela said that from October 1, the Venezuelan authorities will launch their own digital currency, which will have 6 fewer zeros than paper currency.

“Starting from October 1, the digital bolivar will be used as a currency, which will remove six zeros from the national currency,” the country’s central bank said in a statement.

That way, “all numbers expressed in the local currency will be divided by 1 million.”

The Central Bank of Venezuela noted: "The introduction of the digital bolivar will not affect the value of the currency, that is, the value of the currency will not increase or decrease, and this is done to facilitate its use."

In the meantime, citizens can continue to use paper money.

The Venezuelan Central Bank believes that the introduction of digital currency will help restore the country's economy.

Since March 8, the Central Bank of Venezuela has issued three new banknotes with denominations of 200,000, 500,000 and 1 million bolivars. In the past few years, Venezuela has experienced hyperinflation, one of the highest indices of this century. According to data from the central bank, the inflation rate in 2020 was 2,959.8%, while a year ago the figure was close to 9,600%. At the official exchange rate, 1 US dollar is currently equivalent to 4 million bolivars.