Earlier this week, Venezuelan president Nicolás Maduro made the controversial decision to issue a new fiat currency called the “sovereign bolivar” to be backed by a cryptocurrency.
The sovereign bolivar is re-denominated in order to remove zeros from the fleeting national currency, in an effort to deal with the runaway hyperinflation. Adding to the to issue, the sovereign bolivar is pegged to the inconspicuous cryptocurrency, petro, which cannot be traded and is supposedly backed by a barrel of the state’s petroleum, with 100 million petro tokens promised for distributed.
In an effort to smooth over the transition, the Venezuelan government has released the Sovereign Calculator, a new app that is essentially a 1:100,000 currency converter, for Android phones this week. While the calculation is simple, the ramifications of miscalculation can be significant, especially for merchants that are converting the current at the point of purchase.
A recent tweet by the Central Bank of Venezuela introduced the new app as a necessary tool for all citizens.
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!
La Calculadora Soberana una herramienta para todas y todos los venezolanos, es el mejor aliado que tendrá el pueblo para entender y asimilar el proceso de reconversión monetaria.#CalculadoraSoberana #BolívarSoberano
— Banco Central de Venezuela (@BCV_ORG_VE) August 23, 2018
The Sovereign Calculator already has over 5,000 installs and a 5-star rating on 50 reviews, although the root of this activity is unclear.
Photo: Cancillería del Ecuador / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.