Today Venezuela pulled a page out of the Indian "demonetization" playbook, after the country eliminated half the paper cash in circulation by pulling the highest denomination, 100-Bolivar bill, from circulation. "I have decided to take out of circulation bills of 100 bolivars in the next 72 hours," Maduro said in a TV address. "We must keep beating the mafias."
But regardless of the form, money is only credible as long as everyone agrees that it has value, i.e. there’s a large enough market size of people willing to use it. This fundamentally comes down to trust and confidence. But Venezuela’s example shows how quickly that very thin veneer of trust and confidence can shatter, plunging a country into chaotic hyperinflation.
One might think that after 92 years, some wisdom may have leaked into the brain of Zimbabwean president Robert Mugabe. But no. As the world's oldest head of state, he has overseen the demise from a post-colonial success to a pariah state wrecked by hyperinflation. However, having apparently learned no lesson from his prior experiences, The Reserve Bank of Zimbabwe has decided to print a new national currency for the first time since 2009.