Ecuador’s Centralized National Digital Currency

1_broken-trustTo say I am suspicious, is mildly speaking.
The officials lack of transparency is problematic, and their declarations that the new digital currency is not a cryptocurrency and not a threat to the U.S. Dollar is the smoking gun.
We shall keep a suspect-watch on Ecuador’s digital currency. ~Ron
.
via: cryptocoinsnews.com by Caleb Chen
It was just last month [July 2014] that the small Latin American country of Ecuador banned Bitcoin. The Ecuadorian National Assembly voted to pass a monetary and financial reform law introduced to the Assembly by Ecuador’s President, Rafael Correa. While the outright ban of Bitcoin and other decentralized digital currencies like Bitcoin is news in and of itself, the new sparkly gem of Ecuador’s new stance is their intention to create their own digital currency. Most recently, Ecuador’s e-money presentation, which provides more details on the new Ecuadorian National digital currency has been posted to an Ecuadorian government website. Elsewhere in Latin America, Dominica’s citizens are getting a taste of real digital currency.

According to Article 99 of Ecuador’s new law, Ecuador’s Financial and Monetary Regulatory Committee is being tasked with regulation of the new digital currency, and the Ecuadorian Central Bank is being charged with its implementation and development. Currently, Ecuador uses the US dollar as its “currency of choice;’ though, history tells us choice has little to do with it in such situations. Article 96 of the same law specifically bans the “emission, production, initiation, falsifications, or any other type of [cryptocurrency] simulation, and its circulation through any channel or way of representation.” More simply put, Article 96 makes illegal the circulation and acceptance of all currencies on the wrong side of the Monetary and Financial Political Regulatory Committee.

ecuador coat of arms

President Correa has emphasized that this plan is geared towards helping the 40% of Ecuadorian economy participants that don’t have access to traditional banking provided under the “dollarized” system. Ecuador is creating something, a centralized something, that can be used between cellphones, which should provide utility to those that need it most within Ecuador. The mobile payments industry is a place where Bitcoin has truly shown in recent years. Kipochi and other private companies around the world are doing what Ecuador plans to do, already.

 

What Will Ecuador’s National Digital Currency Look Like?

Previously, CCN’s Venzen Khaosan has taken an in depth look into what Ecuador’s cryptocurrency, which he coined as “cryptocentavo,” might look like. More recently, the Ecuadorian government has given a presentation that details more information regarding Ecuador’s future digital currency. The most specific point that has now been promised and can lay to rest any speculation is this: Ecuador’s new digital currency won’t be a cryptocurrency.

Nothing Like Bitcoin

As the new digital currency is being created by Ecuador’s Central Bank, it is unlikely that any of the innovations created on the Bitcoin network in the last five years will be seen in Ecuador’s digital currency. The supply of the new currency will not be fixed and will change based on demand. In addition, the new Ecuadorian digital currency will be backed by liquid assets. Whether that liquid asset will be oil or USD remains to be clarified.

Nothing Like USD

Deputy director Gustavo Solorzano claimed that the proposed digital currency is meant to circulate alongside the USD and will not be a cryptocurrency like Bitcoin nor a way to ween Ecuador away from the USD.

RELATED:
https://ronmamita.wordpress.com/2013/11/19/do-the-feds-love-bitcoin/
https://ronmamita.wordpress.com/2013/12/05/more-bad-news-for-bitcoins/
https://ronmamita.wordpress.com/2014/06/20/another-devious-plan-by-bankers/
https://ronmamita.wordpress.com/2014/07/24/banksters-another-round-of-social-engineering/
https://ronmamita.wordpress.com/2014/08/06/the-control-plan-governments-cashless-society/
https://ronmamita.wordpress.com/2013/11/28/hidden-agendas-forced-to-use-digital-currency-but-wait-crypto-currencies-are-good-right/
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Want Worldwide PEACE and Prosperity. We are the solution we have been searching for... Free People of Earth will solve our crisis and create an era of Creativity. Be at Peace; Be Aware; Be Creative; Be Active; Be Free and Alive; and then Share it. LOVE & Peace AMOR y Paz

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2 comments on “Ecuador’s Centralized National Digital Currency
  1. RonMamita says:

    Ecuador will be the First Country to Start Digital Currency

    Posted on September 3, 2014 by Martin Armstrong
    Digital money
    Digital-Money

    Ecuador has announced it will begin to circulate electronic currency created by its central bank in December. This is the way of the future. They often take a country like this for the test case. Ecuador will begin the process and we will see it swing to the USA and Europe during the decline in the ECM after 2015.75. This is the way to the future.

    Ecuador’s currency is effectively the US dollar. Ecuador is planning to take the first step toward abandoning the country’s existing currency, the U.S. dollar as people perceive the action. But this is a trial run for the USA since it will be a digital replacement that is going to emerge as a new electronic currency.

  2. RonMamita says:

    Keiser Report: Mortgage Crisis 2.0

    Published on Sep 4, 2014

    In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the impending second wave of the lastest mortgage crisis, this time due to Helocs (Home equity lines of credit) and HAMP (Home Affordable Modification Program) interest rate resets. In the second half, Max interviews Aaron Krowne on the true state of the housing market across America – from home ownership rates to mortgage arrears.
    .

    Bitcoin to influence the geopolitical chessboard

    Too much cheer-leading for “BITCOIN”, however innovation and creativity will deploy alternatives as this global institutional assault on the People continues.
    Well worth a listen, discussion, and share ~Ron

    2 Sept 2014 Max Keiser and Trace Mayer talk about the U.S. government war against the civilian population with militarized-police-TSA-Mass-surveillance etc, and the WW3 is here and the Bitcoin & innovative freedom vs tyranny…
    Start at the 12:39 que

    See Part 2 below, go to 11:37 que:

    ABOUT Trace Mayer, J.D.: author of The Great Credit Contraction holds a degree in Accounting, a law degree from California Western School of Law and studies the Austrian school of economics. He works as an entrepreneur, investor, journalist and monetary scientist. He is a strong advocate of the freedom of speech, a member of the Society of Professional Journalists and the San Diego County Bar Association. He has appeared on ABC, NBC, BNN, radio shows and presented at many investment conferences throughout the world.

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The Worldwide Wave of Action
Peaceful Global TransitionApril 4th, 2014
Exercise freedom and creativity for all Earth’s inhabitants to explore ready breakthroughs in Self Organizing Communities, economics, and technology. This is a D.I.Y. project
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Institutions of crime Big days have come and gone (government Elections, and Tax filing). Search for what is hidden and for what is not spoken. Be Aware of the next big Day for fraudulent institutions.
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