The Central Bank of Ecuador could regulate cryptocurrencies this year

In the last few hours it has been announced that another Latin American country will take a stand on cryptocurrencies. This is Ecuador, which has confirmed through its central bank that it will not recognize cryptocurrencies like bitcoin as legal tender, instead treating them in the asset category.

According to Guillermo Avellán, the company’s manager, these digital assets will have a different category than legal tender in a dialogue with Bloomberg Line.

“The central bank is working on a project that will allow regulation of cryptocurrencies, bearing in mind that the currency law states that the dollar is the only legal currency in the country. However, we are working on a regulation that will be submitted to the Board of Monetaria to review and approve it,” Avellén said, adding that they will not recognize them as legal, like El Salvador, but legal and fiscal restrictions on their use and However, he recognized that cryptocurrencies “is a reality and we cannot stand on the edge of it,” adding, “We have to keep in mind that cryptocurrencies are an asset, but given their high volatility, it’s very complicated . some.” as legal tender”.

The Central Bank of Ecuador could regulate cryptocurrencies this year
The Central Bank of Ecuador could regulate cryptocurrencies this year

“We will work in the first quarter of 2022 to ensure that this regulation can be reviewed and approved by the Monetary Council between the second and third quarters of the year,” he added.

“We want to avoid any type of abuse or illegality that may occur, since unfortunately there have been cases of money laundering and regulation must also take these scenarios into account,” added Avellén, emphasizing that all Ecuadorians must have access to clear information about, what and how to use cryptocurrencies.

The head of the Ecuadorian institution also recognized that they are trying to improve the financial inclusion of their citizens, expressing that today “half of the population does not have access to a financial institution”. He concluded by pointing out Ecuador’s unique position in the region in terms of its currency, as it is the only Latin American economy that is dollarized. In particular, he said that his government is “committed to making the central bank the custodian of dollarization, guaranteeing technical autonomy and institutional empowerment. Dollarization has brought great benefits, including price control; the ability to plan for the long term has made it possible to reactivate credit, it has increased people’s purchasing power.”

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