Article published by BBC states, that Ecuadorean government has released more details of its plans to create what it calls the world’s first digital currency issued by a central bank. New electronic money – which name was still not published – will be emitted somewhere in December.
New crypto will be used alongside existing Ecuador currency, which is USD. Ecuadorean abandoned their own currency after a crippling bank crisis in 2000. As Rafael Correa (president) have said:
“The digital currency will help those who cannot afford traditional banking. Electronic money will be used to pay government bureaucrats in a hygienic manner. The new currency is also designed to help poorer Ecuadoreans make and receive payments using mobile phone technology”
Such systems are really popular in some of African nations, where they are running privately. In Ecuador it will be all governmental and may help to increase the money supply and devalue US dollar holding – a first step toward abandoning the USD.
Make our own, ban all the rest
What may seem really controversial is the latest decision of Ecuador’s National Assembly to ban all stateless digital currencies (Bitcoin, Litecoin, etc.) and only approve usage of yet-to-be-published Ecuador cryptocurrency.
Source: BBC
