Ecuador’s digital currency is winning hearts!

Guest Author | August 13, 2015 | 4:30 pm

Ecuador’s digital currency is winning hearts!

Guest Author | August 13, 2015 | 4:30 pm

At a time when the world is waking up to the delights of digital currency, a lot of people still remain unaware of the Ecuador’s dinero electrónico.

While Bitcoin, Ripple, Litecoin or Peercoin are becoming increasingly popular, it is Ecuador’s dinero electrónico that has taken this small nation by the storm. What is even more exciting is that unlike the other digital currencies, which boast of no central bank backing, dinero electrónico is a legal tender and has been the official currency of the state since the year 2000.

This currency is being used by its citizens easily to do daily jobs like buying gas or other daily essentials. Therefore, to say that it is now part and parcel of the lives of common folks is actually quite an apt description.

Such is the ease with this digital currency that today it trades alongside US dollar. The people are finding it quite convenient to use and anyone with a simple mobile phone can do transactions without having to even move.  The process is simple; open an account with a simple cellphone and you are free to move ahead with transactions. Later money can be added at any registered outlet or any bank.

Although Ecuador remains the first country to actually churn out this digital currency by the will of the state, yet other nations are not far behind. African countries, Haiti, and Paraguay have also been using mobile money quite successfully and many digital currency stalwarts themselves see a huge potential in the digital currencies.

But some analysts warn to tread with caution at least in the case of Ecuador and are of the view that the stranglehold of the government is going to be a problem for this digital currency. It does not help either that other digital currencies remain illegal in this country. We will have to wait and watch to know the accuracy of such doomsday predictions, but for now the success of dinero electrónico has indeed become a hope for digital currency advocates and users.

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    It is not a coincidence Ecuador is run by an elected President who is an economist and former academic. He inherited political power in his country after corruption and poor administration lost its own currency and decided to adopt someone else’s as their own. .This may appear simple to anyone who had no knowledge of the important role of the creation of money to the administration of a country’s economy, but it is a major handicap for anyone administering it. .Mr Rafael Correa is showing again his astuteness by introducing a paralleled Ecuadorian currency while still keeping the US dollar going, to avoid interruptions in the flow of trade. . He’s doing it in time pending the precipitous collapse the US dollar is expected to have after the loss of its Reserve status is complete in 2016.

  • Ivan Antonio Sanchez Vera

    This article states some facts that are just not true. I live in Ecuador, and most people is not using the government cryptocurrency as a payment method. Some people and company use it to gain some tax benefits, that’s it. No gas station I’ve been to accepts dinero electronico. Furthermore, no common citizen wants to accept payments in dinero electronico instead of dollars. Where is the author getting is information from?
    Other fact, dinero electronics haven’t been around since the early 2000 as stated here! Where are the sources/references of this article.

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