The Central bank of Venezuela (BCV) announced this Thursday the third monetary reconversion in the era of Chavismo that will take effect on October 1 and will eliminate six zeros from the current sovereign bolivar, which will be called the digital bolivar.
“As of October 1, 2021, the digital bolivar will come into effect, by applying a monetary scale that removes six zeros from the national currency. In other words, all monetary amounts and everything expressed in national currency will be divided by one million (1,000,000) ”, reads a statement from the BCV.
The document adds that “this change in the monetary scale” is supported “in the deepening and development of the digital economy” in Venezuela and considers it as “a historical milestone”.
Despite the commitment to a digital currency, the BCV will continue to issue physical bolivars with a new unified image of the Liberator’s face from 2012 and an illustration alluding to the Battle of Carabobo on the sides. The monetary family will be made up of 5, 10, 20, 50 and 100 bolivar bills and a 1 bolivar coin.
A new family of banknotes will progressively circulate with the existing ones, within the framework of the implementation, as of October 1, of the New Monetary Expression.
According to information from the Central Bank of Venezuela (BCV), as of October 1, paper money of Bs. 5, 10, 20, 50 and 100, and a coin of Bs. 1, will circulate simultaneously with the cone current.
These new banknotes, which will be gradually incorporated, have on the obverse a watermark with the image of Simón Bolívar and a typographic engraving with the text BCV.
While on the reverse, they have an image alluding to the 200 years of the Battle of Carabobo with very fine lines.
In practice, the incorporation of the New Monetary Expression consists of the elimination of six zeros from the current monetary cone, in order to modify transactions, computer systems and accounting records, with a view to the implementation of the Digital Bolivar.