Things continue to get very interesting in Venezuela as of right now. While the country has its own national cryptocurrency, not everyone will benefit from this currency. The Western town of Elorza is now issuing its own paper currency as a result. A rather remarkable decision, although it is evident this sets a very peculiar precedent as well.
It is not exactly common for cities to issue their own paper currency. While this has happened before, making it legal tender is a different thing entirely. Venezuela has a massive shortage of banknotes as of right now. This makes the decision by the town of Elorza all the more unusual. Issuing a town-wide paper currency at such a critical time seems to be counterproductive in every way imaginable.
Another new Currency in Venezuela
According to the Elorza people, this decision makes a lot of sense. Right now, the hyperinflation is killing the local economy in Venezuela. Additionally, the scarcity of Bolivars makes for a troublesome scenario. This new currency can be purchased at the local mayor’s office through bank transfers only. A remarkable turn of events, and one that sets a very uncommon precedent for the rest of the country.
It appears there are bills of two separate denominations. So forth, over 2 bn worth of Bolivares has been converted to this new currency. This clearly shows people in this town are desperate for proper solutions when it comes to using and spending money, regardless of government intervention. It is evident this decision will not go by unnoticed, and may even face a fair amount of repercussions as well.
It is not the first time a town in Venezuela wants to print its own money. El Panal in Caracas issued paper notes late last year. These notes can be exchanged for rice which is a pretty common good in the community. It is unclear if this currency is still used right now, though, but it is a remarkable concept regardless. Things continue to head in an interesting direction in Venezuela, that much is rather evident.
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