Join the BitcoinNews Telegram channel for daily updates >>LINK

Venezuela Ditching Bolivar Fuerte for Crypto-Backed Sovereign Bolivar

Venezuela Ditching Bolivar Fuerte for Crypto-Backed Sovereign Bolivar

Support free writers: > send a tip

written by

The Venezuelan government is ditching the Bolivar Fuerte fiat currency and replacing it with the Sovereign Bolivar on 20 August 2018, which will apparently be tied to Venezuela’s state cryptocurrency the Petro. This is due to extreme hyperinflation that has made the Bolivar Fuerte practically worthless, to the point that toilet paper is a far more ideal currency than the Bolivar Fuerte. The Bolivar Fuerte is expected to reach 1 million per cent annual inflation by the end of the year according to the International Monetary Fund. At this point the situation in Venezuela can be considered a currency collapse, like post WW1 Germany and more recently in Zimbabwe.

The Bolivar Fuerte replaced the Bolivar in 2008, with each Bolivar Fuerte being worth 1,000 Bolivars. The transition from Bolivar Fuerte to Sovereign Bolivar will be even more extreme, with each Sovereign Bolivar being worth 100,000 Bolivar Fuerte. Originally, the Sovereign Bolivar was going to be launched in June 2018 at a ratio of 1 to 1,000 Bolivar Fuerte, but was delayed.

There would be nothing to stop the Sovereign Bolivar from experiencing hyper-inflation like the Bolivar Fuerte or the Bolivar if nothing else was changed, but the Venezuelan government is trying something drastically new via anchoring the Sovereign Bolivar to Venezuela’s state-backed Petro cryptocurrency.

The President of Venezuela, Nicolas Maduro, says, “The economic reconversion will start on August 20 definitively with the circulation and issuance of the new Sovereign Bolivar, the new monetary cone that is going to have a new method of anchoring the Petro.”

Maduro goes on further to say that the Petro will be improved to proliferate globally. Technical details of the Petro are difficult to verify. It is supposed to be backed by Venezuelan oil, but it is unknown how exactly.

This marks the first time in history that a national fiat currency would be backed by a cryptocurrency. If everything is true regarding what Venezuela says about the Petro, then the Sovereign Bolivar would essentially be an oil-backed currency, which is another first. Details on how the Sovereign Bolivar will be anchored to the Petro have not been disclosed.


Follow on Twitter at

Telegram Alerts from at

Image Courtesy: Pixabay

Help spread this article :) is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of 


Read More Bitcoin News


The Tragedy of Fiat Money

Over the course of the last 18 years, the European Central Bank (ECB) printed new currency, multiplying money supply by more than 5 times, bringing it to 1308 billion. Here we discuss whether or not the central bank’s actions could be considered a robbery.

Read More »


Join our Newsletter

Video of the Week


Latest on Bitcoin News

Join our Newsletter