After having faced two reconversions (2008 and 2018) and several implementations of monetary cones, the financial and payments system in Venezuela is on the verge of collapse.
The scarcity of national currency banknotes accentuates the serious liquidity that exists, which has pushed citizens to forcibly adopt the use of foreign currency (Brazilian Real, Colombian Peso, Dollars, and Euros).
In a new attempt to oxygenate the economy or at least to facilitate daily payment operations, the Venezuelan Administration has proposed a "general digitization of the payment system" which even involves the implementation of electronic devices to pay for transportation. public.
I must emphasize that this measure will have no effect on the recovery of the economy, since the underlying problem is not being attacked, such as the devaluation of the currency due to huge inflation.
- According to figures issued by the National Assembly of Venezuela, the year 2020 closed with hyperinflation at 3,713%, thus accumulating, consecutively, 38 months in hyperinflation. Only inflation in 2020 was more than 1,220%. *
Obstacles to achieve Digitalization of Payments
Before achieving the digitalization of payments, the necessary minimum conditions should work in terms of technological adequacy, which do not currently exist in Venezuela:
It would be necessary to implement electronic gadgets (Smartphones, points of sale, QR code readers, debit cards) to which all citizens should have access, even those from the most remote populations of Venezuelan territory.
All citizens should be banked.
Special devices and systems should be implemented for the elderly who do not have mastery of technology.
The most limiting factor is found in the broadband platform.
As many of you already know, Venezuela has the poorest internet service and speed of the entire South American container, service interruptions are the order of the day, for which, I can assume that transactions would collapse at peak times and at times of the year with the greatest flow of commercial transactions.
In addition to this, we have the deplorable conditions of the national electricity generation system. General blackouts occur daily in Venezuela.
The digitization of the payment system in Venezuela is a vulgar illusion created by the National Government. Venezuela does not have the technological conditions to digitize all financial operations, there is no internet with enough bandwidth to support all operations.
An example can be found in the utopia of online education that has been implemented for a year, as a result of restrictions due to the pandemic. The already deficient Venezuelan educational system has been seriously harmed by this methodology, students of all levels have not managed to reach the basic levels of educational activity, teachers cannot evaluate all students with the minimum requirement, pedagogy completely disappeared in Venezuela.
Perhaps this measure could have a beneficial effect on the public transport sector since it would facilitate the payment of the service due to the shortage of notes and coins.
But making the promise that "100% digitalization of payments" will be achieved (Nicolas Maduro's statements) and that this will improve the country's economy, is total irresponsibility on the part of the president and his executive train.
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