Ecuadorean Virtual Currency?

[Erdogan]

Ecuador is dollarized, but they are probably unhappy about that, and look for an opportunity to regain control over the money that is used in the country.

There is a reason why they have dollarized the economy. Trying to remove it might cause capital flight again.

Yes, but do they know it, and is the current situation preferrable to the government?

[toleng]

Ecuador is dollarized, but they are probably unhappy about that, and look for an opportunity to regain control over the money that is used in the country.

If they implement this the government of Ecuador will have the same level of control over their currency as they do now (none) because the currency will be backed by some kind of liquid asset (if I had to guess, dollars). The only difference is that it will be less expensive to use the currency.

[leannemckim46]

Ecuador is dollarized, but they are probably unhappy about that, and look for an opportunity to regain control over the money that is used in the country.

There is a reason why they have dollarized the economy. Trying to remove it might cause capital flight again.

They are not removing the fact that it's currency is backed by dollars, they are trying to make it less expensive to produce their own currency (it costs money to print the bills that their citizens use for commerce). If most of the money in circulation is digital then they will not have any printing related costs.