Economics
Venezuela’s Maduro Plans Shift to Fully Digitalized Economy
- Physical money will disappear, president says in interview
- Government to allow electronic payments in foreign currency
Nicolas Maduro speaks in Caracas in 2018.
Photographer: Carlos Becerra/BloombergThis article is for subscribers only.
Venezuela’s government is planning to move to a fully digital economy as hyperinflation has made worthless bolivar notes practically disappear, and dollarization expands through the local financial system.
The U.S. dollar has operated as an escape valve for Venezuela amid U.S. sanctions and collapsing oil revenues, President Nicolas Maduro said in a televised interview with Telesur on Friday. He said 18.6% of all commercial transactions are in dollars, while 77.3% are carried out in bolivars with debit cards. Only 3.4% are paid with bolivar notes.