Skip to content
Catholic Online Logo

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 DECEMBER 2016
Universal:
End to Child-Soldiers: That the scandal of child-soldiers may be eliminated the world over.
Evangelization: Europe: That the peoples of Europe may rediscover the beauty, goodness, and truth of the Gospel which gives joy and hope to life.



Comments


More Americas

Pope Francis calls for prayer as thousands pack Chapeco cathedral following devastating plane crash Watch

Image of Pope Francis calls for prayer.

By Kenya Sinclair (CALIFORNIA NETWORK)

On Monday night, 71 people perished in a horrific plane crash south of the Colombian capital of Medellin. LOS ANGELES, CA (Catholic Online) - Only six of the 77 passengers and crew survived, three of them members of the Chapocoense club, a soccer team on the brink of ... continue reading


Championship Brazilian soccer team perishes in overnight plane crash Watch

Image of The plane carrying 81 passengers and crew crashed into a mountain near its destination. It may have run out of fuel.

By Marshall Connolly (CALIFORNIA NETWORK)

Brazil and Colombia are in mourning today following the crash of a small airliner carrying 81 people. The plane collided with a mountain near Medellin, Columbia. Among the deceased is nearly the entire soccer team, Chapecoense, on its way to play a much anticipated, ... continue reading


Final gift to a dying man - Dictator Fidel Castro receives gift 10 days before death Watch

Image of Fidel Castro.

By Kenya Sinclair (CALIFORNIA NETWORK)

Just ten days before the former leader of Cuba was pronounced dead, he met with Vietnamese President Tran Dai Quang and received a special gift. LOS ANGELES, CA (Catholic Online) - Fidel Castro passed away due to unannounced causes Friday night.In one of the past ... continue reading


'Everyone feels it' - Fidel Castro's death prompts some to celebrate in the streets while others mourn Watch

Image of There are mixed feelings toward the death of Fidel Castro (EPA).

By Kenya Sinclair (CALIFORNIA NETWORK)

A national 9-day mourning period began Saturday when Cuba awoke to news of Fidel Castro's passing. LOS ANGELES, CA (Catholic Online) - Fidel's brother Raúl Castro made the announcement Friday on Cuban television."I say to the people of Cuba, with profound pain I ... continue reading


A MIRACLE? Jesus Christ appears in image with Catholic priest (PHOTO) Watch

Image of

By Abigail James (CALIFORNIA NETWORK)

The face of Jesus Christ has appeared in a photograph of a priest performing the novena in Argentina. LOS ANGELES, CA (Catholic Online) - During the Catholic ceremony in the town of Caucete, not far from the Chilean border, a man named Favio Garay took a photo and ... continue reading


Mexican Mayor kills 300 people, who he ordered incinerated in network of ovens Watch

Image of Large ovens and 55 gallon drums were used to incinerate bodies and hide evidence of the crimes.

By Marshall Connolly (CALIFORNIA NETWORK)

Mexican authorities have arrested a former mayor who may have participated in over 300 drug killings in his village. Sergio Alonzo Rodriguez was mayor in Allende, which is just 33 miles from the Texas border. LOS ANGELES, CA (California Network) - A homicidal mayor has ... continue reading


Pope Francis asks for mercy - Cuba responds by pardoning 787 prisoners Watch

Image of Pope Francis talks Cuban President Raul Castro into showing mercy to nearly 800 prisoners (CNS).

By Kenya Sinclair (CALIFORNIA NETWORK)

Nearly 800 prisoners were pardoned from Cuban prisons at the behest of His Holiness Pope Francis. LOS ANGELES, CA (Catholic Online) - A statement was released Tuesday from the Council of State headed by Cuban President Raúl Castro.He explained the prisoners selected ... continue reading


Abducted priest discovered ALIVE in Veracruz - Signs of torture evident Watch

Image of People celebrate after discovering Fr. Ruiz is alive.

By Kenya Sinclair (CALIFORNIA NETWORK)

When Father Jose Luis Sanchez Ruiz was abducted from Catemaco, Veracruz, citizens were both worried and angry. LOS ANGELES, CA (Catholic Online) - According to BBC, many claimed Fr. Sanchez Ruiz was abducted after speaking against drug violence and corruption as well ... continue reading


Canadian military investigates mysterious sound emanating from Arctic ocean Watch

Image of A Canadian anti-submarine aircraft has been sent to search for clues to the mysterious sound. They do not believe the sound is caused by a submarine however.

By Marshall Connolly (CALIFORNIA NETWORK)

A mysterious sound is emanating from the arctic sea floor, and it may be scaring wildlife away from a sensitive area in the Arctic. Canadian officials are investigating. LOS ANGELES, CA (California Network) - There is a mysterious "pinging" noise coming from the Arctic ... continue reading


Missing teen found 20 years later - TIED TO A BED IN HIS PARENTS' BASEMENT Watch

Image of Police happened upon Armando de Andrade by chance (Guarulhos Police).

By Kenya Sinclair (CALIFORNIA NETWORK)

A 16-year-old teen went missing over twenty years ago in Guarulhos, Brazil. When he was discovered, authorities could hardly believe what he'd been through. LOS ANGELES, CA (Catholic Online) - According to the BBC, police were going door-to-door in an unrelated ... continue reading


All Americas News

Newsletters

Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

Daily Readings

Reading 1, Isaiah 40:1-11
1 'Console my people, console them,' says your God.2 'Speak to ... Read More

Psalm, Psalms 96:1-2, 3, 10, 11-12, 13
1 Sing a new song to Yahweh! Sing to Yahweh, all the earth!2 ... Read More

Gospel, Matthew 18:12-14
12 'Tell me. Suppose a man has a hundred sheep and one of them strays; ... Read More

Saint of the Day

Saint of the Day for December 6th, 2016 Image

St. Nicholas
December 6: The great veneration with which St. Nicholas has ... Read More