Venezuela’s Currency Collapse
What do you do when your currency is completely devalued and worth next to nothing? If you are Venezuela, you print 1,000,000 bills and you declare that your country will soon be the first all-digital currency economy.
In Venezuela, the bolivar bills are pretty much worthless. The central bank has had to circulate 200,000, 500,000 and 1,000,000 bills but even a 1 million note is worth about 53 cents in American money. The economy has all but imploded. Citizens are now turning to the American dollar for everyday transactions.
President Nicolas Maduro said that he plans to move to a fully digital economy by the end of the year to deal with the hyperinflation of his currency. We’ll see how that goes!