Ecuadorean Virtual Currency?

[jc01480]

Read an article about it.  Sorry, can't link it at the moment.  Anyone read it as well?  Thoughts?

Good day.

[1715286400]

1715286400

[1715286400]

1715286400

[Swordsoffreedom]

Well we were discussing it in politics as well but this is an economic topic by all means.

In my opinion three ways they can do it, they can go mintchip like the Canadians and try to make a digital currency that way, borrowing from the research they did before it was abandoned.

They can go bangla-pesa on it and go with mobile apps and money being stored that way and see how that goes, and then abandon the US dollar peg if it becomes widely successful for them in the country.

Or they could do something else with it entirely since its still shrouded in mystery, but a Central Bank controlled currency amuses me since their is no cap so how it works will be interesting to see, along with more details.
__
From politics thread
The new currency was approved, and stateless crypto-currencies such as Bitcoin simultaneously banned, by Ecuador's National Assembly last month.

That's socialism for you: ban what is free and open and make it closed and not free..

http://hosted.ap.org/dynamic/stories/L/LT_ECUADOR_DIGITAL_MONEY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-08-29-08-28-04

https://bitcointalk.org/index.php?topic=761896.msg8591087#msg8591087

[Mightycoin]

Read an article about it.  Sorry, can't link it at the moment.  Anyone read it as well?  Thoughts?

Good day.

You are a stupid,I have no link to confirm it but from this act I am sure you are

[giveBTCpls]

Do you mean they are going to do a sort of "EcuaCoin" shit? We've seen what happens with country coins. IF they want to go the crypto route, then they should simply adopt BTC.

[Hasher99]

Do you mean they are going to do a sort of "EcuaCoin" shit? We've seen what happens with country coins. IF they want to go the crypto route, then they should simply adopt BTC.

It means they are gonna open up new crypto thing then how would it be decentralized again?They will for sure put on some measure to centralize it.

[linxproz]

Maybe they haven't studied enough the advantages of bitcoins because they could adopt btc as their virtual currency.

[itsAj]

Well we were discussing it in politics as well but this is an economic topic by all means.

In my opinion three ways they can do it, they can go mintchip like the Canadians and try to make a digital currency that way, borrowing from the research they did before it was abandoned.

They can go bangla-pesa on it and go with mobile apps and money being stored that way and see how that goes, and then abandon the US dollar peg if it becomes widely successful for them in the country.

Or they could do something else with it entirely since its still shrouded in mystery, but a Central Bank controlled currency amuses me since their is no cap so how it works will be interesting to see, along with more details.
__
From politics thread
The new currency was approved, and stateless crypto-currencies such as Bitcoin simultaneously banned, by Ecuador's National Assembly last month.

That's socialism for you: ban what is free and open and make it closed and not free..

http://hosted.ap.org/dynamic/stories/L/LT_ECUADOR_DIGITAL_MONEY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-08-29-08-28-04

https://bitcointalk.org/index.php?topic=761896.msg8591087#msg8591087

It is really no different then any "paper" fiat currency except that it is backed by some asset (I would suspect dollars). The government said specifically that their new currency will not work in the same way that bitcoin works.

It looks like the government is trying to reduce the cost of businesses doing business by making it so that businesses don't have to spend money on things like security to keep their cash safe.

[Timetwister]

It's crap, just another form of fiat. I don't want any kind of money that can be printed by anyone.

[wasserman99]

It's crap, just another form of fiat. I don't want any kind of money that can be printed by anyone.

You are correct to say that it is another for of fiat, however you are incorrect to say that it can be printed by anyone. The digital currency will be backed by liquid assets, so the amount will be limited to by the assets that back it.

[Timetwister]

It's crap, just another form of fiat. I don't want any kind of money that can be printed by anyone.

You are correct to say that it is another for of fiat, however you are incorrect to say that it can be printed by anyone. The digital currency will be backed by liquid assets, so the amount will be limited to by the assets that back it.

What kind of liquid assets? It just a very small portion is backed, then it's nearly the same as pure fiat. Imagine that every $100 dollar bill was backed by 0.001 gold ounces, it would be nearly the same as now.

[crocko]

Ecuador has announced that its government-backed digital currency will be ready for circulation by December in a move which analysts dispute is tantamount to replacing the US dollar as its legal tender.
This yet unnamed currency was approved in the Ecuador’s National Assembly in July.
The weird part is in the Ecuador the ‘stateless’ digital currencies including Bitcoin were outright banned.
A presentation with additional details on the virtual money was published on the Ecuadorian government website.
In fact this "coin" is not a real coin.
They're going to do something fairly simple that has dollar-pegged tokens transmitting value to pay taxes and merchants. It sounds like their own Paypal essentially, with closed rails. The comparison to a mobile carrier's network suggests something closer to that than even a fork of a proof-of-stake coin. The inability to buy bonds with it also suggests something that lacks any crypto 2.0 features.

[yunkie]

How can teach all the people to use it? and they need the technology themselves (everyone must need at least a smartphone) so..

[itsAj]

It's crap, just another form of fiat. I don't want any kind of money that can be printed by anyone.

You are correct to say that it is another for of fiat, however you are incorrect to say that it can be printed by anyone. The digital currency will be backed by liquid assets, so the amount will be limited to by the assets that back it.

What kind of liquid assets? It just a very small portion is backed, then it's nearly the same as pure fiat. Imagine that every $100 dollar bill was backed by 0.001 gold ounces, it would be nearly the same as now.

The law is not specific to say what assets the currency is backed by, but I would suspect US dollars. I think the purpose of them introducing this digital currency is to lower costs of accepting and dealing in cash fiat.

The intention is not not make it something like bitcoin, nor to have their own national currency, but to essentially use other countries' fiat as currency.

[Wilhelm]

I didn't read up on the article but I too say that they should just adopt bitcoin.

I however would understand a countrycoin if they add automatic transaction tax. Instead of current tax regulations just tax a small percentage of every transaction to pay for the facilities that your contry provides.

[crocko]

I didn't read up on the article but I too say that they should just adopt bitcoin.

I however would understand a countrycoin if they add automatic transaction tax. Instead of current tax regulations just tax a small percentage of every transaction to pay for the facilities that your contry provides.

True, they should adopt Bitcoin, but they banned all the ‘stateless’ digital currencies including Bitcoin.
Why ? Bitcoin and others are decentralized coins, and the Ecuadorians can't control them.
This new "coin" will be regulated by their Central Bank. And guess who control the CB in Ecuador? El Presidente & Co. 

[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.

[thecast]

Sill have to see a single successful "countrycoin" 

[realdope]

Ecuador has enough computers to make btc a viable currency?

[Eastwind]

Ecuador has enough computers to make btc a viable currency?

That would be a fiat digital coin, not BTC.

[panju1]

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.