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Ecuador’s presidential candidate proposes to adopt a national cryptocurrency, but it will not replace the US dollar – Economics Bitcoin News

An Ecuadorian presidential candidate hinted that a cryptocurrency would be created in the country as part of his government’s agenda. Giovanny Andrade stated that the national cryptocurrency aims to “facilitate” transactions across the country.

Cryptocurrency may be backed by gold

In an interview with Primicias, Andrade, who represents the Ecuatoriana Alliance Party, believed that its cryptocurrency concept was a key part of the country’s proposal. However, he does not want to get rid of Ecuador’s dollarized economy:

We are looking for ways to create Ecuadorian cryptocurrency. This does not mean that we will get rid of dollarization. We must support dollarization.

The Ecuador-Chile Mining Chamber of Commerce also claimed that a series of investors wanted to allocate 320 million US dollars to fund “Gold Refineries in Latin America.” He also said that this cryptocurrency uses gold as gold, just like Venezuela’s petroleum.

Andrade continues to talk about the situation of his visit schedule, he was elected on February 7, 2021, the national cryptographic plan:

“It is crucial that we have to create a cryptocurrency for all internal interests within the country (such as internal transactions). This will be very effective for Ecuador.

Will the hypothetical Ecuadorian cryptocurrency become another oil of Venezuela?

The dollarization of Ecuador has always been a sensitive topic in public discussion. In 1999, the country adopted the U.S. dollar as its official currency. All of this happened in the context of a severe economic and inflation crisis.

The then President of Ecuador, Jamil Mahuad, was removed from office in January 2000 because the political party accused him of releasing the economic crisis. However, no president can cancel the dollarization policy.

As far as the encryption industry is concerned, Latin American countries are not well-known companies in the region. However, Ecuador has shown some interest in blockchain adoption in the country’s banking and dairy industries.

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

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