Ecuador is planning to create the world’s first digital currency issued by the country’s central bank, in what is seen by many as a step to abandon the US dollar, the currency now used by the Central American country.
The currency is expected to start circulating in December, according to the country’s Central Bank.
The technical details or the name of the currency have not been revealed, although the officials stated that it would not be a crypto-currency like Bitcoin.
The new currency is expected to co-exist with the US dollar, the current official money Ecuador uses, and will be channeled for 2.8 million people in the country – 40 per cent of the participants in the economy – who are too poor to afford the usual banking.
Use of the currency will be voluntary, and it will not be used to pay the state employees.
It will be possible to make and get payments via cellphones, Central Bank’s deputy director Gustavo Solorzano told AP.