An Ecuadorian presidential candidate hinted at creating a cryptocurrency in the country as part of his government agenda. Giovanny Andrade said the national crypto aims to “facilitate” transactions across the country.
Crypto could be backed by gold
During one interview Andrade, who represents the Union Ecuatoriana party, believes that the idea of cryptocurrency is an integral part of his country’s proposals. However, he does not want to detach himself from Ecuador’s dollar economy:
We are looking for ways to create an Ecuadorian cryptocurrency. This does not mean that we will escape dollarization. We have to support dollarization.
The Ecuadorian-Chilean Mining Chamber also claimed that a number of investors are planning to provide $ 320 million to finance a “Latin American gold refinery.” He also said that such a cryptocurrency is backed by the yellow metal gold, like Venezuela’s Petro with oil.
Andrade went on to talk about the national crypto plans on his agenda if elected on February 7, 2021:
“It is important that we create the cryptocurrency for all internal benefits within the country, e.g. B. for internal transactions. This would work very well for Ecuador.
Could the Hypothetical Ecuadorian Cryptocurrency Be Another Venezuelan Petro?
The dollarization in Ecuador was a sensitive issue in the public debate. In 1999 the country became accepted the dollar as the official currency. All of this happened in the context of a severe economic and inflationary crisis.
Jamil Mahuad, then President of Ecuador, was dismissed from his post in January 2000 on charges accused by political parties of causing the economic crisis. However, no president has been able to reverse the dollarization policy.
In terms of the crypto industry, the Latin American country is not a known player in the regional area. However, Ecuador has shown some interest in introducing blockchain to the country Banking and dairy Sectors.
What do you think of a possible Ecuadorian cryptocurrency backed with gold? Let us know in the comments below.
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