Venezuela undergone demonetization too warned about cyber-attacks:
Venezuela, which like India has withdrawn its highest currency note from the market, has cautioned about cyber-crimes that target digital economy.
Relevance of the warning:
Venezuela has the highest per head web connectivity in Latin America and could have gone for digital economy. But several cyber-attacks have shown that the digital economy is in fact far more vulnerable to cyber-attacks than real currency transactions. Venezuela’s telecom and banking sectors suffered a series of cyber-attacks in 2016, which has prompted the government to stick to currency-based economy.
Since India shares the same scenario of switching to digitalisation, it must consider the potential risks assosiated with it and come up with the solutions to overcome its impact.
Reason behind the demonetization in Venezuela:
The recall of 100 Bolivar notes is aimed at neutralising the mafia networks based in Colombia and supported by Brazil and the United States who want to destabilise Venezuela financially and politically.