In Venezuela, there is a great problem in using liquid money because of Bolivar’s inflation. The total value of 100 Bolivars is equal to only 5 U.S. cents approximately. In Caracas, the situation is not very suitable to the citizens and people of Carcas are worried about their future. Actually, in Venezuela, the government has printed a large amount of money and that resulted in a straight drop of Bolivar.
It is now difficult to purchase daily needs in the Venezuelan currency. They can’t carry a huge amount of money in wallets. People are using backpacks to carry their currency bundles. Even normal newspaper seller’s daily income is in lakhs in Venezuelan currency. “All of Carcass is unsafe,” sad the 42 year Kiosk owner. People carrying too much cash is very dangerous in Caracas due to the heavy crime rate. Purchasing became a problem here. To complete daily needs Venezuelan’s has to carry big amount of money that may be a cause of robbery because the crime rate in Venezuela is very high. Sacred people are thinking about shifting from Venezuela.
Rise of Online Money
Henkel Gracia, director of the Venezuelan economic think tank Econometrica said, “The use of online payments is likely to have sored.”Now people are using credit cards to pay money for their daily needs. Digital payment system is now in air of Venezuela. Venezuelan’s can’t escape from it because it is much safer than using liquid money.
To avoid the problem of carrying lots of cash people were compelled to switch to electronic transaction. Many locals and shop keepers confided that 90% of their business has shifted to online.
Eventually to get out of this bottle neck government may start or is contemplate to start higher denomination currency which is logically the requirement of the economy.