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Venezuela is moving closer to formal dollarization, with economist Steve Hanke drafting a bill to abolish the bolivar. According to reports, the National Assembly appointed him as a special adviser this month. The Johns Hopkins economist drafted a full dollarization law that would abolish the bolivar and the central bank. He puts the odds of passage at 50% to 80%. Since 2017, I have maintained that dollarization is Venezuela’s best defense against hyperinflation. I am grateful to Professor @steve_hanke for mentioning our work in Fortune and, especially, for agreeing to serve as an advisor to the Lápiz National Parliamentary Delegation on… — Antonio Ecarri A. (@aecarri) August 20, 2026 What Hanke’s Dollarization Plan Actually Proposes According to Fortune, Hanke is working on the project alongside Assembly member Antonio Ecarri, founder of the centrist “Lápiz” party. This marks Hanke’s second attempt at this cure in Venezuela. In 1995 and 1996, he designed a currency board as chief economic adviser to President Rafael Caldera, a plan that failed to win a majority in the National Assembly. The economist argues that conditions look different this time. He told Fortune that surveys show most Venezuelans already want to dump the bolivar, and many already shop in dollars even though they get paid in local currency. His plan would shut down the central bank entirely, ending the government’s ability to print money. Inflation currently runs near 400% annually, still the highest rate in the world. “Venezuela would be the most competitive economy in the world. The bolivar has lost 78% of its value to the U.S. dollar in the past year,” the economist said. Follow us on X to get the latest news as it happens. #VNZWatch🇻🇪: Today, I measure Venezuela’s inflation at a CRUSHING 350.1%/yr. TO CRUSH INFLATION, VENEZUELA MUST DITCH THE BOLIVAR AND DOLLARIZE.…
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