Venezuela announces digital wallet for paying state benefits

Nicolás Maduro, president of crisis-hit Venezuela, has announced that starting September, state benefits will be deposited in digital wallet accounts associated with the country's national ID card.

The move is designed to avoid logistical problems associated with paying out large volumes of cash in a country plagued with hyperinflation, which the International Monetary Fund estimates could hit 1,000,000% this year.

The system will operate via a QR code on the back of national ID cards turning them into a bank card through which people can top up their accounts via deposits or withdraw money at state banks.

The measure was announced during the socialist party's fourth congress.

Maduro said that the mobile wallet would "do wonders" "at all levels."

Tareck El Aissami, head of the economic vice presidency, was quoted by local press as saying that 7.7mn workers have already registered to be paid the minimum wage through the system.

Maduro said that the state benefit for pregnant women of 700,000 bolivars would be deposited in the wallet as would a "carnival" benefit of the same amount.

The president also announced the creation of a new trade ministry, which will be in charge of overseeing the operation of the domestic market.

The digital wallet can be accessed at www.billeteramovil.gob.ve.