The Central Bank of Venezuela has just announced it intends to issue a central bank digital currency (CBDC) in October.
In addition, according to the announcement, the regulator also plans to carry out a currency redenomination that will cut six zeros to the currency due to the inflation the country is suffering.
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As from October 1, the digital currency of Venezuela's central bank, dubbed digital bolivar, will enter into circulation in the country. Its fiat equivalent will have a new currency of 1 bolivar, as well as bills ranging from 5 to 100 bolivars.
It should be noted the launching of this CBDC will be accompanied by an SMS exchange system aimed at facilitating payments and transfers between users of the central bank's digital currency. According to the regulator, neither the CBDC nor the redenomination of the currency will have any effect on the value of the bolivar:
"The bolivar will not be worth any more or any less, in order to facilitate its use, it is being taken to a simpler monetary scale."