Edit- I know how they created a virtual currency to build confidence, and after a point declared the virtual one as the official currency, but I wanted to know how it was tackled by that step.
In: Economics
It’s a really interesting story that I won’t be able to do justice.
Brazil created a parallel currency to the cruzeiro real called the URV (trans: ‘ real value unit’) pegged to the US dollar and let the cruzeiro real continue to hyperinflate. For a period, financial statements were published in both currencies to establish trust. Then over about a month and a half, the old real was replaced by the new real.
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