According to a foreign media neowin report, according to a report from Telesur,The Bolivarian Republic of Venezuela has launched a new digital currency-Digital Bolivar-to facilitate domestic transactions in the country.The new Digital Bolivar will not compete with banknotes because they have the same value and use the same name.
When we talk about cryptocurrency, everyone must think of using smartphone apps for transactions. But according to The News Crypto report, Digital Bolivar will be available to people who use feature phones because it runs based on SMS. One advantage for the government is that it can track all payments made with Digital Bolivar so that it can get more taxes.
Those who do not want to use the SMS-based system for payment can still use paper money. In addition, the exchange ratio between the newly introduced currency and the old version is 1 to 1 million, which means that six zeros have been cancelled at once.
Venezuela is the second country in the Americas to place digital currency at the center in recent weeks. Last month, El Salvador decided to make Bitcoin a legal tender to give citizens the right to use it to pay for goods and services. It is unclear how the project will develop in the long-term, but its deflationary nature may make savers quite happy.
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