ForexMinute.com – For a country which is under heavy debts and has mortgaged most of its natural assets for the same, Ecuador was always been a perfect place to use cryptocurrencies. However, the government there took an innovative stand by first, banning all forms of decentralized digital currencies including Bitcoin, and second, announcing to launch its very own backed alternative.
And the project has finally started to roll, as per a report published on Bloomberg recently.
According to the reports, Republic of Ecuador will launch its official cryptocurrency in October this year. As its legislation has already been approved by President Correa’s government last month, there would be no hassles in implementing this project. A monetary organization is also planned on papers for now, which will subsequently be regulating the yet-to-be-named coin. Most importantly, the coin will be backed by “liquid assets”, like oil.
The Ecuador’s Central Bank, Banco Central del Ecuador, has shied away from providing any more information regarding the upcoming launch. An earlier statement from National Assembly however is enough to fill the space, which says: “Electronic money will stimulate the economy. It will be possible to attract more Ecuadorian citizens, especially those who do not have checking or savings accounts and credit cards alone.”
However, internet research brought us more facts to justify the Ecuador National Assembly’s reason to nod for a regulated digital currency. The country has enormous debt on its shoulders, which has been mortgaged for its depleting oil and gold reserves. The US Dollar meanwhile is draining constantly from the economy amidst rising public spending since 2007. The idea here is to introduce an alternative currency so that the US Dollar can be preserved to pay back the debts.
The soon-to-launch cryptocurrency however won’t be distributed for free, like unbacked and rebellious Auroracoin. As per the available reports, it will be forced upon the citizens in exchange of Dollars. For obvious reasons, it won’t go down the throats of many.
We will be updating you with this report in future.
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To contact the reporter of this story: Yashu Gola at email@example.com