A regulation is being worked on so that digital currencies are recognized as investment assets, but not as legal tender.
The manager of the Central Bank of Ecuador (BCE), Guillermo Avellán, announced that by March 2022 a draft of the regulation about the use of cryptocurrencies in Ecuador.
According to statements given by the official to BloombergLinea, one of the main objectives is for national users to know what the limits are with respect to digital currencies; that is, what can and cannot be done within the country with the cryptocurrencies.
“This regulation does not imply that the cryptocurrencies are going to become coins of legal tender as happened in El Salvador, but they are a reality and we cannot be on the sidelines of that,” said Avellán.
In this context, the project that is being worked on is based on the premise that, according to the Monetary and Financial Code, the dollar it is the only legal currency in the country; however, the cryptocurrencies can be recognized as valid assets for investment.
Avellán pointed out that, due to its volatility (price rises and falls), currencies such as the bitcoin they are not practical for the payment of day-to-day transactions.
In addition, he assured that clear limits should be placed on the use to avoid any type of abuse or illegality, due to the fact that cases of scams with cryptocurrencies. Those scams, according to the manager of the Central Bank, also include asset laundering operations.
«The benefit for the user will be to have clarity about cryptocurrencies in Ecuador,” Avellán said.
The draft regulation must be reviewed and approved by the Monetary Board, so it will come into force until September 2022. (JS)
FACT.- According to estimates of platforms that operate with cryptocurrencies, in Ecuador there are around 400,000 people who have made operations with digital currencies.
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