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…