Skip to content

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 FEBRUARY 2017
Comfort for the Afflicted.
That all those who are afflicted, especially the poor, refugees, and marginalized, may find welcome and comfort in our communities.


Comments


More Americas

Venezuela pulls plug on CNN, accuses network of fake news Watch

Image of A protestor wears a bandana that reads, 'prohibited to forget.'

Venezuela has pulled CNN off the air for what it says is" fake and hostile news." An order from the national telecommunications commission ... continue reading


New reports detail severe abuse by members of the Sodalitium Christianae Vitae

Image of

A two-part report made public on Tuesday detail sexual, physical and psychological abuses committed by members of the Sodalitium ... continue reading


Is climate change responsible for the WORST yellow fever outbreak on record? 157 CONFIRMED DEATHS - How can you protect yourself? Watch

Image of People are lining up for yellow fever vaccines in wake of the latest outbreak.

The Brazilian Ministry of Health reported an ongoing yellow fever outbreak beginning in December 2016. Since then, the disease has been ... continue reading


Colombia attempts to revive child soldier program - Why are children joining willingly? Watch

Image of It is believed around 6,000 minors still fight in Colombia.

Colombia is the only country in the Americas where child soldiers can still be found. Rome, Italy (CNA/EWTN News) - Despite the recent ... continue reading


God makes strange and unbelievable appearance in central Mexico Watch

Image of

An unusual "hand-shaped" cloud appeared in the skies of central Mexico earlier this month. LOS ANGELES, CA (Catholic Online) - A local man ... 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.