Ecuador is Trying to Quit Dollarization by Introducing a Government Backed Cryptocurrency
Prof. Steve Hanke, who 14 years ago was the chief intellectual architect of Ecuador's points out that Dollarization brought great benefits to the Ecuadorian people. Now that there is a growing pressure from the government to totally quit Dollarization, Prof. Hanke says that going off the dollar will also have terrible consequences for Ecuador's economy: "If you go off, the fiscal deficit gets bigger, the level of debt gets bigger, inflation goes up and economic growth goes down. All the economic indicators just go south." Ecuadorians are perfectly aware that dollarization has enabled them....
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The Ecuadorian government has begun the long process of registering citizens interested in receiving the country's official government backed altcoin. Ecuador has taken the most unique approach to crypto-currency of any government around the world - one which has generated a lot of interest but has won over few friends. After first moving to ban the sale and use of crypto-currencies such as Bitcoin, the South American nation announced that it would create and distribute its own crypto-currency. Starting from December 24th any citizen of Ecuador can now register to receive the new digital....
Over the weekend, CCN reported on the government of Ecuador's decision to ban Bitcoin, along with all other cryptocurrencies, via a National Assembly majority vote on July 23rd. An outright ban placed on Bitcoin by one nation, or another, has always been inevitable. What is more interesting (and unexpected), in the case of Ecuador, is its concurrent announcement of plans to create its own national cryptocurrency. Ecuador is small South American country situated in the Andes, between Peru and Colombia. The country's booming mining economy and hydro-electric output is sizable and in 2013,....
Earlier this year, the South American nation of Ecuador became the first country in the world to have its own official digital currency. Ecuador abandoned the use of its national currency 'sucre' in 2000 amidst the banking crisis to adopt the US dollar as the currency for transaction. Since then the country has been using dollars as the instrument of payment. The country, led by its President Rafael Correa since 2007 had announced in mid-2014 the plan of going digital with a government backed digital currency. The new digital currency system is set up to be used alongside the conventional....
It was just last month that the small Latin American country of Ecuador banned Bitcoin. The Ecuadorian National Assembly voted to pass a monetary and financial reform law introduced to the Assembly by Ecuador's President, Rafael Correa. While the outright ban of Bitcoin and other decentralized digital currencies like Bitcoin is news in and of itself, the new sparkly gem of Ecuador's new stance is their intention to create their own digital currency. Most recently, Ecuador's e-money presentation, which provides more details on the new Ecuadorian National digital currency has been posted to....
The Central Bank of Ecuador is planning to issue cryptocurrency-specific regulation later this year. According to statements from Guillermo Avellan, the manager of the Central Bank of Ecuador, this will bring more clarity to the cryptocurrency scene in the country, and will contribute to preventing crimes such as money laundering.
Central Bank of Ecuador Has Eyes Set on Crypto
The Central Bank of Ecuador is planning to prepare and issue cryptocurrency-related regulations this year. The announcement was made by Guillermo Avellan, manager of the Central Bank in an interview on....