Ecuador first country to issue digital currency

Posted on August 1, 2014 • Filed under: Economy, Ecuador Venzen Khaosan wrote … besides representing a next-logical-step in the evolution of currency, Ecuador’s decision to adopt cryptocurrency must be driven, in part, by the many practical benefits of doing so. Reducing dependency on outmoded, cumbersome payment systems as well as reducing Dollar dependency are self-evident motivations. Consider, too, that Ecuador’s central government has a self-declared socialist agenda, which changes the character of the event. Although any country can ban Bitcoin (and cryptocurrency), it is hard to imagine how the decision to implement a state-run cryptocurrency could have come from any European nation, for example. Regardless of national intentions, such a move would just simply not be sanctioned by the European Central Bank, due to its massive economic and political ramifications.Ecuadorian citizens are raising concerns around the matter of privacy. This article has not touched on the topics of privacy and anonymity that are so central to Bitcoin’s design. It is hard to imagine how a centralized network could (or would want to) guarantee anonymity. The matter remains open and up to the people of Ecuador to resolve. Perhaps Ecuador can deploy and run the national cryptocurrency whilst respecting its users’ privacy. Doubtfully, but perhaps.


The degree of openness of the Cryptocentavo, as well as the extent of community involvement in its development, remains unknown for now. Question marks also hover over the matter of foreign exchange: to what extent, if at all, would international partners and creditors accept the Ecuadorian cryptocurrency? It may well turn out that the usefulness of a centralized, government-controlled cryptocurrency stops at the nation’s border. Read Article

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