Android App Launched by Venezuela’s Central Bank for Converting Fiat

Android App Launched by Venezuela’s Central Bank for Converting Fiat

The Banco Central de Venezuela, which is the central bank in the country, has introduced an Android app. This will help the citizens to convert Venezuela’s old fiat money into the Sovereign Bolivar. The difference between the old Bolivar and the latest is that it is pegged with petro, which is their digital coin launched in February. The country had to introduce the much-devalued currency after hyperinflation surged significantly in recent period amidst increasing economic chaos.

Makes It Easy

The Android app is known as “Calculadora Soberana,” which is a sovereign calculator. This will not do any specific complex math since it takes away five zeros from the old bolivar fiat currency. The aim is to make it simpler to convert it into a crypto-pegged digital coin thus enabling it to make a conversion of 1:100,000, according to ccn.com report. The app is carrying a rating of 4.7 on Google Play store and witnessed more than 10,000 times of downloads. There were 184 people who reviewed it.

The description disclosed that it enabled users to keep track of the most recent news, as well as, information on the conversion of the currency. In the social media, Twitter, the central treated the app as a tool for all citizens in Venezuela and termed it as the best ally that people should understand and incorporate the monetary re-denomination process. The developer of the app, Communication Digital VE, is having other apps on the app store of Google and they appear to support the country’s socialist regime.

Early in August, the country’s president, Nicolas Maduro, was forced to devalue the bolivar currency by as much as 95 percent. This has made him peg the new Sovereign Bolivar with its petro token, which is an oil-supported virtual asset. He also expressed his view that the digital coin could become an alternate currency within Venezuela. The BBC termed the country as becoming a paralyzed country citing the economic conditions that left the citizens in tenterhooks.

There were also restricted cash withdrawals for the residents while authorities have arrested a number of merchants. They were charged with taking advantage of the situation for charging exorbitant prices. Apart from this, shoppers have to make calculations for goods prices at black market exchange rates. For instance, the sovereign bolivar rate is reportedly 40 percent less though the official exchange rate is established at 60 a dollar.

Use Cases

Before making petro as an official alternate currency, Venezuela has offered difference use cases. For instance, the country declared early in the year that it might charge for exports with petro while offering a 30 percent discount to India on crude oil if the payment was made in cryptocurrency. However, it was not accepted by the country.

In April, Venezuela’s Blockchain Observatory executive secretary, Daniel Pena, indicated that the impact of the digital coin could be felt in the 3 – 6 months period. However, the country is witnessing a controversy since it announced the digital currency. The American President, Donald Trump, has imposed a ban on any of its citizens investing in the Petro.

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