Venezuela is struggling badly right now. With the local currency devaluing at an accelerated pace, things are going from bad to worse for the country’s economy. As a last-ditch effort, the government is now looking into creating its own central bank digital currency. Whether or not this measure will be successful remains to be determined.

Venezuelan Government is Grasping at Straws

The concept of central bank digital currencies has been kicked around so many times it is almost changing shape. Several countries are exploring this option right now, although none have successfully created such a tool as of today. Venezuela is the latest country to give this option a try, albeit more out of necessity than innovation. For the time being, this concept is still in the early stages of development, as no major progress has been made in this regard.

That has not deterred the Central Bank of Venezuela from contemplating the issuance of a national virtual currency in the very near future. During a symposium held earlier this week, government representatives joined bank officials and private sector experts. Venezuela has always shown a keen interest in blockchain technology and cryptocurrency, even though there has been a lot of opposition to these concepts as well.

During the symposium, several concepts were highlighted including technical features related to blockchain technology, as well as how initial coin offerings should best be handled moving forward. Those ideas are likely of less interest to the average cryptocurrency enthusiast than the concept of a Venezuelan national digital currency. 

No one can deny Venezuela will need new ways to bring life to its flailing economy in the face of continued hyperinflation, food scarcity and social unrest. That is a lot easier said than done, although technological advancements related to blockchain technology should not be ignored by any means. Strengthening the local economy may no longer be possible, though, as things have evolved in such a downward direction that there may be no coming back whatsoever. Whether or not this digital currency venture will change any of that remains to be determined.

The first step toward realizing this concept was taken not long ago, though it is evident there are very few concrete plans on the table right now. Embracing a central bank digital currency is of the utmost importance in addressing the country’s economic woes, although nothing has been set in stone just yet. There is also the possibility of further exploring cryptocurrency mining, although that concept has been met with a lot of resistance

For the time being, it remains to be seen how the financial situation evolves in Venezuela. A lot of damage has been done over the past few years and there is little to no improvement in sight. Plenty of people are looking for alternatives to the national currency, which is why Bitcoin is slowly gaining more traction as we speak. The future remains very troubled for Venezuela; that much is certain.