Giovanny Andrade, the presidential candidate of Ecuador proposed Govt to establish a national cryptocurrency to improve payment transactions inside the country. The proposed national cryptocurrency will be backed by Gold like Venezuela’s national cryptocurrency called petro.
Mr. Andrade expressed that he would strive to develop a national digital currency to improve internal transactions and system accountability. He further elaborated that a step towards a national cryptocurrency does not mean getting rid of dollarization.
“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.”
On February 7th, 2021 election, if he elects as a president, his proposal of crypto aims at,
“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.”
With the surging prices of Bitcoin, Ethereum, Binance coin, and many other cryptocurrencies, crypto Mining, emerging crypto wallets, and decentralized finance (DeFi) applications, have led various nations to develop their own national digital currencies. China is already taking lead in developing its digital Yuan or Central Bank Digital Currency (CBDC). US banks are preparing to use stable coins as a mode of payment. Similarly many other nations or either researching the idea of CBDC or in experimental phases.