GOING DIGITAL: Ecuador plans digital currency
By Catholic Online (NEWS CONSORTIUM)
8/31/2014 (2 years ago)
Catholic Online (www.catholic.org)
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.
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.
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.
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.
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
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
A television personality in Colombia has been blasted by Catholic clergy and others following his claim that Pope Francis was paving the ... continue reading
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
JosÃ© 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
by Catholic Online
- Mother shares tragic photo of dying daughter as she pulled the plug ...
- Mother shares heartbreaking photo of her dying daughter as she pulls ...
- Pope Francis calls for prayers following terror attacks in Spain, Finland
- New Jersey Mayor dismantles shrine to Our Lady of Guadalupe
- Pope Francis asks for prayers following terror attacks in Spain HD Video
- Daily Readings for Saturday, August 19, 2017
- St. John Eudes: Saint of the Day for Saturday, August 19, 2017
- Daily Reading for Tuesday, August 22nd, 2017 HD
- Daily Reading for Monday, August 21st, 2017 HD
- Daily Reading for Sunday, August 20th, 2017 HD
- Charlie Gard's mother opens up about the beautiful life of terminally ill Charlie HD