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 MAY 2017
Christians in Africa.
That Christians in Africa, in imitation of the Merciful Jesus, may give prophetic witness to reconciliation, justice, and peace.


Comments


More Americas

Catholic priest critically injured after vicious knife attack during Mass Watch

Image of Father Jose Miguel Machorro Alcala [not pictured] was severely injured after being attacked in the Mexico City Cathedral.

A Mexican priest was severely injured after being violently stabbed in Mexico City's Metropolitan Cathedral on May 15. LOS ANGELES, CA ... continue reading


Cinco de Mayo - What is the day really about? Watch

Image of

Cinco de Mayo is upon us, and while many believe it is Mexico's Independence Day, it actually is not. So, what is Cinco de Mayo and why has ... continue reading


Astounding find beneath the Pyramid of Quetzalcoatl stuns archaeologists - What did they discover? Watch

Image of Citadel at Teotihuacan.

Archaeologists investigating one of Mexico's most well-known pyramids uncovered a surprising presence. LOS ANGELES, CA (Catholic Online) - ... continue reading


Venezuelan government attacks the Catholic Church, Archbishop assaulted Watch

Image of Archbishop of Caracas, Cardinal Jorge Urosa Savino.

The Archbishop of Caracas in Venezuela has been attacked by a government paramilitary group. The Chavistas attacked the Archbishop while he ... continue reading


Dramatic discovery reveals the experts are wrong, the Americas were populated by boat, just as many Native Americans explain Watch

Image of Evidence suggests Native Americans arrived by boat, following the coast and establishing fishing villages, just as some Native Americans have claimed in their oral traditions.

For decades, the prevailing hypothesis for the populating of the Americas is that people crossed the Bearing Strait land bridge and ... 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.