Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

8/31/2014 (7 months 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 (7 months 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.

---


Pope Francis: end world hunger through 'Prayer and Action'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2015
Universal:
Scientists: That those involved in scientific research may serve the well-being of the whole human person.
Evangelization: Contribution of women: That the unique contribution of women to the life of the Church may be recognized always.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Americas

First U.S. Hispanic Saint: Pope Francis to canonize Junipero Serra during U.S. visit Watch

Image of Father Junipero Serra's canonization will

By Abigail James (NEWS CONSORTIUM)

Pope Francis and the Vatican have announced plans to canonize the Blessed Junipero Serra during the Pope's visit to the United States on September 23. Serra will become the United States' first Hispanic saint. LOS ANGELES, CA (Catholic Online) - Often times, the ... continue reading


Canadian couple takes to amazing floating fortress to get away from it all Watch

Image of Located off the coast of Tofino, British Columbia, Freedom Cove was built in 1992. The couple, who have two children, live in the home year round.

By Catholic Online (NEWS CONSORTIUM)

Wayne Adams and Catherine King  are an unconventional Canadian couple who have forsaken the bustle of city life with their floating fortress that they've named "Freedom Cove." Off the grid and self-sustaining, the pink and green floating home is a welcome respite ... continue reading


New species of prehistoric 'terror bird' found in Argentina Watch

Image of Researchers say that the Llallawavis likely lived around 3.5 million years ago, near the end of terror birds' reign. It stood about four feet tall and weighed about 40 pounds.

By Catholic Online (NEWS CONSORTIUM)

Birds, it is commonly believed, evolved from dinosaurs. However, between now and then, some horrific, carnivorous birds ruled the prehistoric world with an iron claw. A new species of "terror bird" has been uncovered in Argentina; paleontologists are gaining ... continue reading


Dozens of mummies uncovered in Peru's Cotahuasi Valley Watch

Image of Finding the reasons behind the selective destruction of the mummies and artifacts is a challenge.

By Catholic Online (NEWS CONSORTIUM)

Tombs, containing at least 40 mummies each have been discovered in Peru's Cotahuasi Valley. Archaeologists say that at least 171 mummies have been unearthed at the 1,200-year-old ceremonial site. LOS ANGELES, CA (Catholic Online) - Located on small hills ... continue reading


Underground tunnel between U.S. and Mexico found hidden in wardrobe Watch

Image of When soldiers raided the property, they also reportedly seized 44 pounds of marijuana and a truck being used by the racket to move the excavated earth.

By Catholic Online (NEWS CONSORTIUM)

An average wooden wardrobe near San Diego served a far more sinister purpose. Concealed within its doors was a small trapdoor that led to a secret underground passageway stretching some 500 feet towards the U.S. border. The Mexican military uncovered the ... continue reading


Rare video shows 'successful' exorcism on woman 'possessed by devil' Watch

Image of Laura was described by locals as

By Abigail James (NEWS CONSORTIUM)

A 22-year-old woman, only identified as Laura, was reportedly a good girl before the devil turned her bad, according to Argentina locals. In this disturbing footage, Laura is seen writhing in pain, screaming as Bishop Manuel Acuna performs an exorcism on her. LOS ... continue reading


Magical Chilean hotel straight from 'The Hobbit:' features living wall, waterfall Watch

Image of The hotel, completely made out of wood and stone, is located under the majestic Andes Mountain range, the unique hotel is right in the middle of one of the most valued, as well as endangered regions in the world.

By Catholic Online (NEWS CONSORTIUM)

The Montana Magica Lodge, located in the middle of the southern Andes is something straight from "The Hobbit." It is a literal "Magic Mountain." There is a manmade volcano with a stunning waterfall cascading down its side. LOS ANGELES, CA (Catholic Online) - ... continue reading


Falling to progress, the beautiful Lake Nicaragua will be compromised by artificial canal Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

A massive, fabricated canal, headed by the Hong Kong-based consortium HK Nicaragua Canal Development Investment Company, or HKND is set to undergo construction. The $50 billion project, called the Nicaragua Canal, or the Nicaragua Grand Canal and Inter-oceanic ... continue reading


Mummified bodies of two climbers missing for 55 years believed found Watch

Image of Local officials are confident that the cadavers correspond to two of three Mexicans who went missing after an avalanche 55 years ago.

By Catholic Online (NEWS CONSORTIUM)

At 18,000 feet, Pico de Orizaba in Mexico is the country's highest elevated level. Several climbers have lost their lives trying to scale the mountain. The skeletal remains of two climbers, recently discovered there, are believed to be two of three members of ... continue reading


Villarrica's spectacular eruption: Nature's version of 'fireworks' Watch

Image of

By Hannah Raissa Marfil (NEWS CONSORTIUM)

Chile's most active volcano finally erupted, after starting to show signs of seismic disturbance a few days ago. The volcanic activity raised alarm to over 3,300 residents who were evacuated from the small towns of Villarrica, Pucon and Conaripe before the eruption ... continue reading


All Americas News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, First Peter 5:5-14
5 In the same way, younger people, be subject to the ... Read More

Psalm, Psalms 89:2-3, 6-7, 16-17
2 for you have said: love is built to last for ever, ... Read More

Gospel, Mark 16:15-20
15 And he said to them, 'Go out to the whole world; ... Read More

Saint of the Day

Saint of the Day for April 25th, 2015 Image

St. Mark
April 25: The second Gospel was written by St. Mark, who, in the New ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter