Skip to content
Catholic Online SHopping 20% off RE-Grand Opening SALE

RE-Grand Opening
FREE Shipping over $49 (lower 48)

GOING DIGITAL: Ecuador plans digital currency

By Catholic Online (NEWS CONSORTIUM)
8/31/2014 (2 years ago)
Catholic Online (www.catholic.org)

Experts think this will lead nation to abandon paper and coin currency altogether

In a bold move into the 21st Century, the South American nation of Ecuador is now planning digital currency. Some believe this will eventually lead to the nation's abandonment of paper and coin currency altogether - i.e., the United States dollar.

Some believe that Ecuador's new digital currency will eventually lead to the nation's abandonment of paper and coin currency altogether - i.e., the United States dollar.

Some believe that Ecuador's new digital currency will eventually lead to the nation's abandonment of paper and coin currency altogether - i.e., the United States dollar.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
8/31/2014 (2 years ago)

Published in Americas

Keywords: Ecuador, digital currency, Bitcoin, U.S. dollar


LOS ANGELES, CA (Catholic Online) - Central Bank officials In Ecuador say they expect to start circulating the electronic currency this coming December. The currency doesn't have an official name yet, and officials would not disclose technical details. Officials have admitted that it would not be a crypto-currency like Bitcoin. The amount of the new currency created would depend on demand.

The new currency will exist in tandem with the greenback and, by law, be backed by "liquid assets," according to Deputy director Gustavo Solorzano, The digital currency would be geared toward the 2.8 million Ecuadoreans, 40 percent of participants in the economy, that are too poor to afford traditional banking.

SAVE Iraqi Christians from Genocide --

The digital currency will be able to make and receive payments on cellphones, Solorzano said. Such mobile payments schemes are especially popular in African nations including Kenya and Tanzania, where they are privately run.

The new currency was approved while stateless crypto-currencies such as Bitcoin simultaneously banned by Ecuador's National Assembly last month.

Leftist President Rafael Correa has said the project's only problem is that it has taken this long, defending it against "pseudo-analysts who have appeared in the media trying to smear (it)." He denies any plan to replace the U.S. dollar, which Ecuador set as its currency in 2000 after a crippling banking crisis.

Fausto Valencia, the official in charge of the new currency, said the software is already used in Paraguay by cellphone companies.

Valencia says it's not like Bitcoin, whose advantage is in its technical underpinnings. Only a limited amount of Bitcoin can be minted. Without that safeguard, economists have warned, a government could theoretically create as much as it wants, risking inflation.

An emerging payments analyst with the U.S.-based Aite Group, Nathalie Reinelt says she does not understand any other motivation for creating such a currency than to allow Ecuador to increase its money supply and, essentially, devalue its U.S. dollar holdings.

"It is far too early to know how they are thinking of making the electronic money work," analyst Juan Lorenzo Maldonado of Credit Suisse LLC added.

Some believe it could be a first step to abandoning the U.S. dollar, Ecuador's currency since January 2000.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for AUGUST 2017
Artists.
That artists of our time, through their ingenuity, may help everyone discover the beauty of creation.


Comments


More Americas

Why is Mexico the most dangerous Latin American country for priests? Watch

Image of Mexico has become notorious for murders and kidnappings involving Catholic priests.

For the ninth year in a row, Mexico is the most violent country in Latin America for priests, said a report from the Catholic Multimedia ... continue reading


Do you hate spiders? You might want to skip Mass at this Cathedral... Watch

Image of The giant spider woke up on cue, and walked into the streets below, amazing the crowd. But not everybody appreciated the display.

The Archbishop of Ottawa seems surprised that people didn't like the idea of a giant, mechanical spider in front of the spires of the ... continue reading


SHOCK CLAIM: Pope Francis is 'paving the way for the Anti-Christ' Watch

Image of The Church has asked people avoid his show and commentary as long as he continues to promote division within the Church.

A television personality in Colombia has been blasted by Catholic clergy and others following his claim that Pope Francis was paving the ... continue reading


Did Our Lady of Guadalupe found the Americas? Watch

Image of Archbishop Gomez says Our Lady of Guadalupe's apparition to St. Juan Diego is the true founding event of this country and continent.

The impact of Our Lady of Guadalupe on the Americas should encourage Christians in the U.S. to continue to evangelize, even when their ... continue reading


What did El Salvador contribute to the war? One man saved 40,000 Jews from the holocaust Watch

Image of Jose Arturo Castellanos.

José Arturo Castellanos was a Catholic from El Salvador who during the Second World War was sent as a diplomat to the city of Geneva, ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.