Venezuela Planning New 100,000-Bolivar Bills Worth Just $0.23

[Sithara007]

Well.. just one small question here. Why can't they just re-denominate their currency? Not saying that it is going to slow down the inflation rate, or keep more money in the treasury.. but having bills of 100,000 or 250,000 sound really weird. If I was the finance minister, then I would re-denominate the currency by a factor of 1 million. So the rate becomes 1 New Bolivar = $2.30. It is not going to last long.. but still, it is worth giving a try.

This is happening when inflation is going out of control. In the end of the 1920s in Germany, there were bills which were worth 10 trillions. A year before such a bill was worth 100. The 10 trillion bill was enough to buy one bread. Next day, bread cost 50 trillions. Same happened a few years ago in Zimbabwe. Now in Venezuela, even though at slower pace.

An unpopular opinion here.

In case they are unable to maintain the value of the national currency, why can't they make some foreign currency as the legal tender? I am talking about currencies such as US Dollar and Brazilian Real. If I am not wrong, Zimbabwe allowed its citizens to use USD and South African Rand after its currency got heavily devalued. Why can't Venezuela do the same, rather than printing banknotes which are worth less than toilet paper?

[Ridcan]

wow.  100,000 bolivars only 23 cents?  It is too bad to import even the paper needed for printing money from Italy.  It is now better understood why cryptocurrencies are so important.  people consider their money as bitcoin against the melting value every day and I think it makes a lot of sense.  I found the subject very interesting.

[Vishnu.Reang]

wow.  100,000 bolivars only 23 cents?  It is too bad to import even the paper needed for printing money from Italy.  It is now better understood why cryptocurrencies are so important.  people consider their money as bitcoin against the melting value every day and I think it makes a lot of sense.  I found the subject very interesting.

Nothing wrong in importing the printing paper. You may be surprised to learn that the vast majority of the UN members don't print currency in their countries. The banknotes are printed by foreign agencies such as De La Rue (which provides banknotes to almost 140 different countries). So the case with Venezuela is a bit more advanced. They are not outsourcing the printing and they are doing it within their borders.

[oHnK]

Well.. just one small question here. Why can't they just re-denominate their currency? Not saying that it is going to slow down the inflation rate, or keep more money in the treasury.. but having bills of 100,000 or 250,000 sound really weird. If I was the finance minister, then I would re-denominate the currency by a factor of 1 million. So the rate becomes 1 New Bolivar = $2.30. It is not going to last long.. but still, it is worth giving a try.

This is happening when inflation is going out of control. In the end of the 1920s in Germany, there were bills which were worth 10 trillions. A year before such a bill was worth 100. The 10 trillion bill was enough to buy one bread. Next day, bread cost 50 trillions. Same happened a few years ago in Zimbabwe. Now in Venezuela, even though at slower pace.

An unpopular opinion here.

In case they are unable to maintain the value of the national currency, why can't they make some foreign currency as the legal tender? I am talking about currencies such as US Dollar and Brazilian Real. If I am not wrong, Zimbabwe allowed its citizens to use USD and South African Rand after its currency got heavily devalued. Why can't Venezuela do the same, rather than printing banknotes which are worth less than toilet paper?

Right, I would rather agree if the adoption of another currency in the country of Venezuela is legalized than printing more money.  Currency redomination will also not help much as the government also has to print large amounts of money.  In addition to requiring greater costs to print new money, the government must be prepared to overcome the additional inflation problem due to a decrease in people's purchasing power.

[Nellayar]

We don't surprise anymore if Venezuela will collapse its country at its doom one day. They can't control the inflation once they print and print of paper money. They increasing of purchasing power of individual will help for the price of the goods and products increases. It is not new anymore since Venezuela is one of the country that has corrupt officials. I fear for the future of their citizens if one day they will decline and their country will no longer have the chance to pay the debt. Corrupt government can devastate the whole country, they should be eradicated.

[South Park]

An unpopular opinion here.

In case they are unable to maintain the value of the national currency, why can't they make some foreign currency as the legal tender? I am talking about currencies such as US Dollar and Brazilian Real. If I am not wrong, Zimbabwe allowed its citizens to use USD and South African Rand after its currency got heavily devalued. Why can't Venezuela do the same, rather than printing banknotes which are worth less than toilet paper?

This is simple, because doing such thing will be like an admission they have destroyed the economy and they will be unable to blame anyone else, this also means they lose one of their greatest tools to acquire power for themselves, also while this was allowed in Zimbabwe by the government the truth is they had no choice as this was the reality on the ground and they just made it official, but then they tried to reintroduce their currency and you probably know what happened next right?

[Vishnu.Reang]

This is simple, because doing such thing will be like an admission they have destroyed the economy and they will be unable to blame anyone else, this also means they lose one of their greatest tools to acquire power for themselves, also while this was allowed in Zimbabwe by the government the truth is they had no choice as this was the reality on the ground and they just made it official, but then they tried to reintroduce their currency and you probably know what happened next right?

LOL.. everyone knows that the Venezuelan economy is completely destroyed. Whether they want to admit it or not is another thing. If they use a foreign currency, at least it will reduce the financial burden of the government. As far as I know, these banknotes cost more to print, when compared to their actual value. And by the way, I heard that Venezuelan Bolivar is the only currency in the world that is protected from counterfeiting. The reason is very simple. It costs more than its actual value to do the counterfeiting.

[Mauser]

We don't surprise anymore if Venezuela will collapse its country at its doom one day. They can't control the inflation once they print and print of paper money. They increasing of purchasing power of individual will help for the price of the goods and products increases. It is not new anymore since Venezuela is one of the country that has corrupt officials. I fear for the future of their citizens if one day they will decline and their country will no longer have the chance to pay the debt. Corrupt government can devastate the whole country, they should be eradicated.

Venezuela has so many natural resources and still it's such a poor country with so many economic problems. I am starting to believe that a dooms day wouldn't be so bad. Starting from scratch seems kind of easier that trying to fix the current mess. There is so much corruption going on at the moment that it might be easier to just get rid of all the officials right now. I really hope Venezuela gets its act together.

[South Park]

This is simple, because doing such thing will be like an admission they have destroyed the economy and they will be unable to blame anyone else, this also means they lose one of their greatest tools to acquire power for themselves, also while this was allowed in Zimbabwe by the government the truth is they had no choice as this was the reality on the ground and they just made it official, but then they tried to reintroduce their currency and you probably know what happened next right?

LOL.. everyone knows that the Venezuelan economy is completely destroyed. Whether they want to admit it or not is another thing. If they use a foreign currency, at least it will reduce the financial burden of the government. As far as I know, these banknotes cost more to print, when compared to their actual value. And by the way, I heard that Venezuelan Bolivar is the only currency in the world that is protected from counterfeiting. The reason is very simple. It costs more than its actual value to do the counterfeiting.

Yes everyone knows it including themselves and their citizens but they always blame the US and other financial institutions of their problems instead of blaming their own policies, using the US dollar as the official currency of the country basically means they will be losing their biggest scapegoat and then people are going to wonder, if the US was trying to sink us why are we using their money instead of our own? And they will finally realize that the government of Venezuela is the direct responsible of what it is happening in the country, obviously a lot of people know this already but there is still a lot of people that think otherwise and that will not believe it until this happens.

[k@suy]

We don't surprise anymore if Venezuela will collapse its country at its doom one day. They can't control the inflation once they print and print of paper money. They increasing of purchasing power of individual will help for the price of the goods and products increases. It is not new anymore since Venezuela is one of the country that has corrupt officials. I fear for the future of their citizens if one day they will decline and their country will no longer have the chance to pay the debt. Corrupt government can devastate the whole country, they should be eradicated.

Yes too much money in the circulation is not good, it can affect the value of their currency, they should stop thatif they want to save their economy, they should think first before making this thing, I wonder why they did this, they don't have any economist in the board? that's why it happens?  their country can be fall into debt for them to support their countrymen.

[STT]

Excess currency represents in-efficiency ultimately, its a failure to hold a standard of exchange and so fails the usage case for money as a proxy and utility enhancer in trade.   Think of the original purpose of money, to allow better division and accuracy when pricing and exchanging goods, especially between nations this has proved vital and of benefit to all in a process mentioned by Comparative advantage centuries ago yet we still fail to live upto this standard.     They have destroyed business and trade possible by creating failure of value within the currency exchange, this is always the problem with large governments that they interfere and cost the people far too much and become like leeches on honest sections of the country.

[pankowri]

The more corrupt the country is, the more they need paper money. Corruption is simpler that way, including for government officials. The government flattens employees' salaries to maintain superficial control of inflation and allows for further negotiations, criminal activities. No punishment. Many government officials receive more than their own corrupt wages.

Yes, Venezuela is already known as corrupted country by their government officials. The country has many potential such as their has enough oil to produce for the world. But they don't run in the right path so that they lost their potential and their officials proved as corrupted people. So the country needs some honest people to implement some rules for go ahead very shortly. Cryptocurrency can help them to go fast.

[Vishnu.Reang]

This is so sad and will probably not help at all. They should be trying to fix their economy instead of printing new money. Who is actually going to use such a bill? I saw in a documentary about Venezuela that most stores are not accepting bolivar anymore as a means of payment. Most restaurants and stores only accept USD these. Around 70% of the families have atleast one family member living abroad send money, usually USD to Venezuela.

Venezuela has so many natural resources that the country should be flourishing with the right government. They need to eliminate corruption and make new economic reforms to get back on track.

During the last 4-5 years, millions of Venezuelans have migrated abroad. Now there is a large Venezuelan community in Florida (which was very vocal in its support for Donald Trump, in the recently concluded presidential elections). But then, getting the USD banknotes to Venezuela can be a tricky game. As per the official policy, all the remittance payments must be converted to the national currency, once they reach Venezuela.

[arayde]

They should just stop printing cash, tis completely pointles. They already have cards/crypto, lets just use them and stop waste paper and inks

[Oneandpure]

They should just stop printing cash, tis completely pointles. They already have cards/crypto, lets just use them and stop waste paper and inks

Stop printing cash and have try to build bitcoin or their own coin become legal currency transaction because have enough how economic crisis in Venezuela after cash money is not worth and have inflation value, they have smart how to build digital economic and take part with create new coin based on Venezuela needed right now to bring back good value for the future without have inflation, if Venezuela keep using printing cash money they will always take inflation and playing by other country how to make Venezuela always need to borrow money from world bank and give higher fees transaction.

[uneng]

Venezuelan communist government thought they would have enough income to supply the regime forever just by selling raw oil.
Besides heavy assistentialism, high corruptions levels (what discourage external investors) and human rights violations, Venezuela also doesn't produce its own technology. Countries which are prosperous and thriving usually are specialists in cutting edge technology. That is the best way a country can boost its economy, generate jobs and keep the public expenses healthy.

And actually Venezuela isn't alone on this matter. Many other latin american countries such Argentina and Brazil are in bad economical situations. The same reasons could be pointed too: high corruption levels, lack of own technology development, high criminal levels...

[Stedsm]

I am more than worried about those Venezuelans who have gone all in on BTC. I mean, there's nothing wrong in making crypto a part of your life, but taking crypto as your whole life is stupid. And even if the government is taking shit steps like these $0.23 worth of Bolivar-bills release, I believe that going all in on BTC is not a good idea because if it ever gets crashed (and that's imminent tbh), the whole country will be there to suffer just like they are suffering from their current Government.

[Abiky]

Excess currency represents in-efficiency ultimately, its a failure to hold a standard of exchange and so fails the usage case for money as a proxy and utility enhancer in trade.   Think of the original purpose of money, to allow better division and accuracy when pricing and exchanging goods, especially between nations this has proved vital and of benefit to all in a process mentioned by Comparative advantage centuries ago yet we still fail to live upto this standard.     They have destroyed business and trade possible by creating failure of value within the currency exchange, this is always the problem with large governments that they interfere and cost the people far too much and become like leeches on honest sections of the country.

Exactly. Printing money like crazy will only devalue the currency. What makes something valuable is its scarce supply and exorbitant demand. Venezuela has been experiencing hyperinflation as a result of government's negligence. The Venezuelan Central Bank does not care about restoring the economy to its former glory. If it did, it would've either reduced the Bolivar's supply or adopted a foreign currency. Adopting a foreign currency such as the US Dollar or Bitcoin would've been the most ideal decision to make. As long as President Nicolas Maduro stays in power, Venezuela will continue to sink deeper.

Nonetheless, there's the fear that other countries might experience the same situation due to the coronavirus pandemic. Several countries have been printing money like crazy in order to save the economy from the effects of COVID-19. But what they're doing is essentially the same as Venezuela. If the trend keeps up, central banks will collapse leaving us with Gold and Bitcoin as the only valuable mediums of exchange. The centralized economy will be no more, as people will dive completely into the decentralized economy. Already, Venezuelan people are using crypto on top of the Bolivar for day-to-day payments (where DASH and Bitcoin are the predominant cryptocurrencies in the region). The same situation could happen in other countries if trust is lost in the current monetary system backed by central banks worldwide. Just my opinion

[Vishnu.Reang]

I am more than worried about those Venezuelans who have gone all in on BTC. I mean, there's nothing wrong in making crypto a part of your life, but taking crypto as your whole life is stupid. And even if the government is taking shit steps like these $0.23 worth of Bolivar-bills release, I believe that going all in on BTC is not a good idea because if it ever gets crashed (and that's imminent tbh), the whole country will be there to suffer just like they are suffering from their current Government.

It is their money and they can do whatever they want, as long as they are not doing anything illegal. Those who invested in Bitcoin, or converted their fiat currency or other assets to Bitcoin are currently sitting on top of at least 60% to 70% profits. So why do you need to worry? Obviously this was a very risky option, taking in to account the volatility and lack of legality of Bitcoin. But in the end, things worked out well for them.

[Dorodha]

Many believe that the mining sector in Venezuela has been destroyed by nationalization There is no state policy for this sector As a result, accidents often happen in these mines Venezuela is planning a new 100,000-bolivar bill priced at just $ 0.23. It is not good for crypto because their country does not support crypto and has no access to transactions. This will put it at risk in terms of mining. If Bitcoin is not supported will be difficult to convert to Fiat currency the Venezuelan currency the bolivar has now become virtually worthless paper.