Ecuadorian Presidential Candidate Floats National Cryptocurrency Idea

Ecuadorian presidential candidate wants the country to join in the CBDC bandwagon.

Making Ecuador Crypto-Friendly

According to a recent report by Decrypt, Ecuadorian presidential candidate for 2021 and the current president of the Ecuadorian-Chilean Chamber of Mining, Geovanni Andrade, recently stated that he has plans to develop a national cryptocurrency to enable transactions within Ecuador.

The presidential hopeful, in a recent interview with the digital newspaper Primicias shed light on his government plan, stating that a national cryptocurrency would make internal transactions easier and facilitate their audit.

In addition, Andrade said the national cryptocurrency project is an essential part of his vision for Ecuador.

Andrade noted:

“We are looking at ways to create an Ecuadorian cryptocurrency, this does not mean that we are going to escape from dollarization—we must support dollarization.”


“It is very important that we create the cryptocurrency for all the internal benefits within the country, such as internal transactions. This would work very well for Ecuador.”

Although Andrade sounds optimistic about the ambitious national cryptocurrency plan, it is worth giving a thought whether the vision is a realistic one or not.

For instance, Andrade is not particularly in an envious position within the Ecuadorian political scene. The candidate has already lost the support of his own party.

That being said, it is also the first time that a politician from Ecuador sounds open to the idea of financial decentralization and promotes the use of blockchain technology to achieve the same.

The Race to Launch CBDC

The global race to launch central bank digital currencies (CBDC) seems to be picking steam with an increasing number of countries joining in.

China is perhaps the inarguable leader in terms of having the necessary infrastructure, and testing in place to exhaustively trial its secretive yet controversial digital yuan.

Other nations, including Japan, South Korea, the Netherlands, Sweden, and the UK are mulling own plans to launch respective CBDCs sometime in the future.

As recently reported by BTCManager on January 4, the Ukrainian government had partnered with the Stellar Development Foundation (SDF) to develop a CBDC on the Stellar Blockchain Network.

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Ecuadoran Presidential Candidate Wants to Create a National Cryptocurrency

Ecuadoran presidential candidate Giovanny Andrade shared his plans to create a national cryptocurrency for the Latin American country based on the gold standard.

Giovanny Andrade is the president of the Ecuadorian-Chilean Chamber of Mining and has been a supporter of the dollarization of the Ecuadorian economy started in the year 2000 under the presidency of Jamil Mahuad.

This proposal would take advantage of growing support for cryptocurrencies both in Latin America and Globally.

Supporting Dollarization with Cryptocurrency

According to the candidate, the creation of a national cryptocurrency backed by the gold standard would further develop and support the dollarization scheme instituted by the government by facilitating transactions within the country.

In an interview with the local newspaper “Primicias”, Mr. Andrade stated:

“We are looking at ways to create an Ecuadorian cryptocurrency. This does not mean that we are going to get out from the dollarization process, we must support dollarization. But it is very important that we create a cryptocurrency for all the internal benefits of the country, such as internal transactions. This would work very well.”

Ever since 2000, dollarization has been a controversial decision in the country with many politicians proposing the de-dollarization of the national economy through different mechanisms.

While the 2021 elections have some candidates opposing to it, the criticism toward the process has been declining as time passes, with 85% of Ecuadorians considering it positive by 2015.

A Possible Shift in Attitude

Ecuador has not established a legal framework for cryptocurrency and has displayed a negative attitude toward them in the past when it banned them. While this ban has already been lifted, the central bank has stated that Bitcoin is not an authorized payment in the country.

When asked how would the national bank back the price of the national cryptocurrency, Mr. Andrade said a national gold refinery would be created to institute a national gold reserve, which would the used as the principal foundation for the cryptocurrency.

This would be an approach similar to Venezuela’s national cryptocurrency “Petro” which was backed by the country’s oil reserves. The Venezuelan government also announced the launch of “Petro Gold” in 2018 which would work in the same way but pegged to Gold’s price.

While Giovanny Andrade is not one of the frontrunners in the presidential race according to polls, his proposal reflects a shift that has started taking place in the country toward cryptocurrencies, which is also been taking place in the rest of the continent.

Cryptocurrency’s Growing Popularity in Latin America

Latin America has been a continent historically influenced by global powers when it comes to their economies and political policies, with countries like Russia, China, and the United States sparring for getting the most allies in the region.

This “war” for influence, as well as other internal factors like corruption, has caused some Latin American countries like Argentina, Venezuela, and Bolivia to suffer from periods of high inflation and economical turmoil.

This high inflation has forced citizens of multiple countries to use the US dollar as a means of saving money, as doing so in their national currency would result in losses from the depreciation it would incur.

This results in scarcity and the imposition of restrictions on the buying/selling of foreign currency.

Cryptocurrencies offer a way for people to go around these restrictions, allowing them to access international markets to save and invest their earnings, as well as receive the international funds in the case of ONGs or family assistance.

It is estimated that the Latin American market represented around 9% of the total global market in 2019, a number that is highly likely to keep growing in the coming years.



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