Venezuela is once again showing the world the dangers of a corrupt socialist economy. At issue, its newest currency note that demonstrates the dangers of money printing and hyperinflation.
The Maduro regime is pushing its brand new, 1 million Bolivar bill in a desperate attempt to create an easier currency transaction process. The 1,000,0000 bolviar is the largest note in Venezuelan history yet, the bill is worth just $0.53 U.S. cents.
Venezuela’s economy has shrunk for seven straight years and the situation has grown more dire amid the onset of Covid-19. In an effort to counter his country’s massive economic depression, Nicolas Maduro printed massive amounts of paper money. But, the more the government printed bolivars, the more their value eroded.
As a result, Venezuelans are struggling to transact in bolivars and, increasingly, are turning to U.S. dollars.
Maduro, who’s leadership is disputed by most countries around the world (except for the regimes in China, Russia and Iran) says he intends to introduce a digital currency in the coming year to help address the challenge. Physical money, he says, will disappear.
If nothing else, the introduction of a digital currency will at least save Venezuelans from having to transport millions of bolivars with them each day. Bolivars are required for local transportation including bus fares.
The country’s self-declared President blames the U.S. and Europe for the country’s increased challenges.