The Central Bank of Venezuela is reportedly introducing a CBDC in October, together with a monetary redenomination, which aims to reduce six zeros from the currency, because of the rocketing inflation. 

Specifically, As of Oct. 1, the digital Venezuelan bolivar will reportedly be in circulation throughout the economy. There will be a new 1-bolivar coin available for its cash equivalent, as well as banknotes falling between the range of 5-100 bolivars, as included within the scope of the six-zero readjustment of the currency.

The Central Bank of Venezuela reportedly disclosed details of the development on Friday. The CBDC will be tagged along by an SMS-based exchange network, dedicated to supporting payments and transfers among its users.

The bank reportedly revealed that the CBDC and redenomination of the currency will cause zero impact on the bolivar’s value, and that the overhaul is an included result of an initiative aimed at bringing simplification to the use of the currency.

“The bolivar will not be worth any more or any less, in order to facilitate its use, it is being taken to a simpler monetary scale,” the central bank further remarked. 

Venezuelan President Nicolás Maduro initially hinted at the concept of a digital bolivar back in February, when he generated the idea of the issuance of CBDC, as included in the authoritative moves the national government is adopting, in terms of economic modernization and rebuilding. 

The president has reportedly possessed previous knowledge when it comes to state-issued digital currencies, with the roll-out of the oil-pegged Petro coin 3 years ago, as a medium for circumventing United States sanctions.

“Removing those zeros does not solve, at all, the reason that originated the problem. Without resolving the root of the issue, we will have the same problem in months.”