Ecuador: The First Country to make it's own CrytoCurrency

[imBLACKjack]

is this good or bad for bitcoin? i'm not really sure.

It just doesn't make any sense, fiat has already existed mostly in digital form for years, and what they say they will create is definitely not Bitcoin-like. Ignore it, it's just noise.

maybe it's a 100% premine  like nxt...

Yes, I thought something like premined cryptocoin could be used as official government cryptocoin. Obviously at start government owns all coins so they can slowly sell and release more and more coins for people to use.

They could just exchange the crypto coins for their local currency at a fixed rate, and say that the local fiat currency will no longer be accepted after "x" date. This is how the Euro was distributed.

[Mt. Gox]

It would be hilarious if they posted an [ANN] thread on the altcoin announcements board and was met with the usual accusations of "SCAM!" and "PREMINE!".

is this good or bad for bitcoin? i'm not really sure.

Anything that gets more people into cryptocurrency should be good for bitcoin in the medium-to-long term because it's increasing the number of people open to using bitcoin. These regional competitors are unlikely to take market share away from bitcoin due to network effects. Bigger pie, same percentage slice for bitcoin.

a.k.a. the Dogecoin effect.

[lyth0s]

I could actually see a country starting its own centralized version of a true cryptocurrency, if for nothing else but to be able to track everyone's spending. Force people to use only 1 public address and then you can monitor all money movements, find out who the organized crime is and their partners, find "terrorists" etc etc.

I'm definitely not in favor of this, but I can imagine it occurring. Hopefully they will all dump it ASAP for Bitcoins, but IDK who'd buy that crap.

[Slark]

It is government and authorities dream come true to have centralized digital currency. Imagine the possibilities of tracking every bit of money flow. I don't really know if that is the way it suppose to be...

[666uazan]

What's sad is that what would fix their money woes is to manage money better. Free trade agreements, banking privacy, the ability to buy and sell more freely, foreign ownership, a better workforce (education, health), regional military cooperation to lower the cost of defense, balanced budgets ....

Some things in the modern world, like healthcare, education, seem to get more and more expensive. Some other things are essential - food, clothing, shelter, medicine ... and to have a country encourage good supplies of those things without subsidizing them takes a little finesse.
Nah, let's roll out Ecuadorcoin, what could go wrong?

[Riniaiokl]

They're gonna get 51%ed so hard 

[petersiddle98]

Hopefully everyone is able to mine it and not just the government...

[Bizzaran]

i dont see how this is going to work. how will they recreate the network and mining bitcoin has. they are going to create a small ecosystem that will be vulnerable.

[RappingSniper]

First thought: "Don't drag Bitcoin into this" - it sounds like this is some bound-to-fail altcoin and people will associate it with Bitcoin, coz people.

[vayvanne]

They could just exchange the crypto coins for their local currency at a fixed rate, and say that the local fiat currency will no longer be accepted after "x" date. This is how the Euro was distributed.

AFAIK Ecuador does not have local currency, they uses bucks. why not support bitcoin, rather than inventing yet another bicycle?..
russian cetral bank is in process of creating electronic payment processor as alternative for visa/mc now and my guess is all these activities are on political grounds as well as BRICS bank.
it may be also the preparation of backup plan for overheated dollar.

[LiteCoinGuy]

In 3 years we will have legal coins (from govts) and tolerated/illegal coins like Bitcoin (and iXcoin)

hmmmm i cant see how this would work dude. maybe in 20 years somehow... (google: mintchip)

[zedicus]

They could just exchange the crypto coins for their local currency at a fixed rate, and say that the local fiat currency will no longer be accepted after "x" date. This is how the Euro was distributed.

AFAIK Ecuador does not have local currency, they uses bucks. why not support bitcoin, rather than inventing yet another bicycle?..

The Ecuador government could implement a similar deadline as the EU did with the various local currencies. It could mandate that their citizens start to use their crypto coin starting on a certain date. Citizens could have a grace period as to when both the US dollar and their currency would be accepted.

With all that being said, IMO this is very unlikely because the dollar is accepted almost anywhere in the world and has a much more stable value then bitcoin does.