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There’s a good reason for the banning of bitcoin and digital currency usage in Ecuador back in July.
According to an Associated Press report, Ecuador has plans to create the first government-issued digital currency, in a move that may eventually see the phasing out of the U.S. dollar in use by the country today.
Officials at the country’s Central Bank have said they expect to begin circulating the digital currency some time in December of this year, though details on what said digital currency will be named is under wraps.
A key point officials have made is that the digital currency will not be like bitcoin, and the amount created by the Central Bank simply (or perhaps not so simply) depends on demand.
The currency — at least for now — will exist alongside the dollar, but will be backed by liquid assets, the AP reports.
In a nation where a massive amount of the population cannot afford traditional banking, digital currency could very well help them make and receive payments from their mobile devices.
The official who’s watching over the project, Fausto Valencia, has said the software is already in use by cellular phone companies in Paraguay. So it’s rather clear this will not resemble the digital currencies we are familiar with today.
President Rafael Correa said the only issue he sees with the project is that it’s taken this long to launch.
Digital currency use will be voluntary, and more information will be available in the months ahead. It’s will definitely be interesting to see where this one goes.
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It seems that their digital currency can be used as gateway to crypto currency since its allready in digi form. Its only logical to use it as loop hole . Will see in Dec.
The surest way to know if someone doesn’t think their own idea has merit is when it is forced upon people against their will. A rapist knows he is not desired by his victim precisely because he doesn’t permit the victim to choose. If one had confidence in their offer, they would be readily willing to let others make their choice to accept it freely.
this could be good for btc in the long run as it will give people confidence in digi currencies if it goes well, if it fails it could push people to exchange it for btc (of course theres plenty of reason for it to not go that way, but the glass is half full these days).
im wondering if there will be exchnges that allow for non ecuadorians to purchase it? would be a good means for it to become a btc gateway…
also, im looking forward to see the inevitable security compromises, will the currency be hijacked and all wallets converted to btc? lol lets see.
does anyone know how this will work? i mean is there a blockchain, does it require certain ‘mining’ principles, is the hash rate regulated, is it based on sha or scrypt or what? etc
If they can’t afford the services from traditional banks, then how will the afford to get access to this “digital service?”
This currency seems to be as digital as the euros in my bank account. I don’t understand what the whole hype is about. Bitcoin is cool not because it is digital, but because it is inflation-proof and distributed lacking a central authority. This Ecuatorian thing is just another Latin-American socialist regime trying to inflate themselves by performing a keyword attack on the uninformed masses.