Telesur reports that the new currency, the Bolívar Soberano (Sovereign Bolivar), will have five zeros less than the existing national currency Bolivar Fuerte (VEF) and will be anchored to the oil-backed Petro (PTR) digital currency. The Petro was launched by the government of Venezuela this February.

Maduro noted that the measure intends to align the financial and monetary system in the country "in a radical manner," stating that the reconversion and anchoring to Petro is a "great hope" for developing a "productive, diversified and sustainable economic model."

The president also said that the measure can help with inflation, shortage of cash, as well as mitigate the long lines at ATMs that have become routine for Venezuelans.

Maduro expressed continued confidence in the Petro, declaring that the state-backed digital currency "will end up being consolidated technologically and financially" and will embrace "all the national and international economic activity."