While hyperinflation is still racking havoc in Venezuela’s economy, many believe that cryptocurrency may be the most appropriate answer towards addressing or at least containing this crisis.
The Venezuelan government recently decided to deal with these problems by removing five decimals places from its currency.
Because this attempt to curb hyperinflation turned out to be a bit confusing for most Venezuelans, the government announced its Sovereign Calculator, an Android application that should help citizens better understand the re-denomination.
The Central Bank launches Android app to convert Bolivars to new Petro-powered currency
To build the application, the Venezuelan government has employed the services of one of Venezuela’s most popular software development company, Comunicacion Digital VE. Even though the company has mainly developed games that presented Simon Bolivar and Todo Chavez, as well as Hugo Chavez in a very good light, the company was appointed to help create the app in a campaign to make re-denomination smoother.
The government officially announced the app on Twitter, stating that it is a “tool for everyone and all Venezuelans, is the best ally people will have to understand and assimilate the monetary re-denomination process.”
The application has already been downloaded thousands of times and boasts a very high rating. Quite interestingly, the Sovereign Calculator is factoring the black market situation. According to official exchange rates, the sovereign bolivar is set at 60 per dollar thanks to the Petro. However, on the black market the currency is reportedly going for 40% less.
Since Venezuela’s leader, Nicolas Maduro, announced the introduction of the cryptocurrency late last year, the country’s economic system has been enveloped in turmoil, despite hopes of Petro becoming an alternative currency in the country. Various institutions have even declared the Petro as being unconstitutional, while others argued that it undermines other legitimate currencies, making the whole situation even worse.