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Plans for Ecuadorian cryptocurrency without neglecting ‘dollarization’ – Presidential Candidate

An Ecuadorian presidential candidate implied creating a cryptocurrency in the country as part of its government agenda. Giovanny Andrade stated that the national crypto intends to “facilitate” transactions throughout the nation.

Gold could support Crypto

During a conference with Primicias, Andrade, serving the Union Ecuatoriana party, considers its cryptocurrency idea is a significant part of his country’s plans. Nevertheless, he doesn’t want to ride off from Ecuador’s dollarized economy:

We are looking at ways to create an Ecuadorian cryptocurrency. This does not mean that we are going to escape from dollarization. We must support dollarization.

The Ecuadorian-Chilean Mining Chamber also insisted that a series of investors want to designate $320 million to finance a “Latin American gold refinery.” He also stated that such cryptocurrency is supported by the yellow metal gold, like Venezuela’s petro with oil.

Andrade proceeded to discuss the national crypto plans on his agenda in case he gets elected on February 7, 2021:

“It is essential that we create the cryptocurrency for all the internal benefits within the country, such as internal transactions. This would work very well for Ecuador.”

Could the Hypothetical Ecuadorian Cryptocurrency Be Another Venezuelan Petro?

Dollarization in Ecuador has been a delicate topic in the public discussion. In 1999, the country embraced the dollar as its official currency. All of this happened inside the circumstances of a strong economic and inflationary crisis.

Jamil Mahuad, the then-president of Ecuador, was expelled from his duties in January 2000, since political parties accused him of unlocking the economic crisis. Yet, no president has been able to eliminate dollarization’s policy.

In terms of the crypto industry, the Latin American nation is not a well-known player within the geographical province. Nevertheless, Ecuador has been displaying some attention to blockchain adoption in the country’s banking and dairy sectors.

What do you think about a possible Ecuadorian cryptocurrency backed by gold? Let us know in the comments section below.

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