cuador will regulate cryptocurrencies

By Eleonora Spagnolo - 5 Feb 2022

Ecuador intends to issue a regulation on cryptocurrencies in 2022. This was stated by the manager of Banco Central del Ecuador (PIB) Guillermo Avellán, in an interview with Bloomberg Linea.

Crypto regulation in Ecuador

Ecuador's project is to become a financial hub by taking advantage of the fact that it is the only South American economy that has the dollar as its currency, therefore it relies on a stable currency. But to broaden financial inclusion it also intends to give a clear definition of cryptocurrencies. It is not a question of making them legal tender, because, as explained by Guillermo Avellán, in his opinion cryptocurrencies are too volatile. Therefore, the experience of El Salvador will not be repeated in Ecuador, even if, says Avellán, cryptocurrencies cannot be ignored:

"The Central Bank is working on a project to regulate cryptocurrencies, bearing in mind that the Monetary Code establishes that the dollar is the only legal tender in the country. But we are working on a regulation to present it to the Monetary Council for review and approval. This regulation does not imply that cryptocurrencies become legal tender, as happened in El Salvador, but they are a reality and we cannot stay out of them. It should be borne in mind that cryptocurrencies are an investment asset, but given their high volatility, it is very difficult to consider them legal tender ".

The law that will be approved will serve to define the limits of the use of cryptocurrencies in the country, also to avoid abuse or illegality.

According to Guillermo Avellán, the citizens of Ecuador will benefit from regulatory clarity that will define how to use cryptocurrencies.

The law will be enacted as early as 2022, thus becoming fully operational.

In Ecuador, only 2.73% of the population owns cryptocurrencies

The use of Bitcoin and cryptocurrencies in Ecuador

In Ecuador, only 2.73% of the population owns cryptocurrencies, equal to just under 500,000 people. Bitcoin trading is not illegal in the country, but it is forbidden to use it as a payment system. The problem is that the country is not very accustomed to the use of electronic money, so much so that even in 2015 the introduction of Dinero Electronico did not make too much of a break in the hearts of citizens, given that more than half of the people remained unbanked.

To increase financial inclusion, the government plans to rely on smartphones, 8 out of 10 citizens own one.

Cryptocurrencies could promote inclusion, but the government will have the task of facilitating them and not banning them.


Eleonora Spagnolo

Journalist with a passion for the web and the digital world. She graduated with honors in Multimedia Publishing from the La Sapienza University of Rome and attended a master's degree in Web and Social Media Marketing.

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