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An Ecuadorian presidential candidate hinted at creating a cryptocurrency in the country as part of his government agenda. Giovanny Andrade said the national crypto aims to ‘facilitate’ transactions across the country.

Crypto can be backed by gold

During a interview with Primicias, Andrade, who represents the Union Ecuatoriana party, believes his cryptocurrency idea is a crucial part of his country’s proposals. However, he does not want to flee from Ecuador’s dollar economy:

We are looking at ways to create an Ecuadorian cryptocurrency. This does not mean that we will escape dollarization. We must support dollarization.

The Ecuadorian-Chilean mining chamber also claimed that a series of investors want to mobilize $ 320 million to fund a “Latin American gold refinery.” He also said such cryptocurrency is backed by the yellow metal gold, such as Venezuela’s Petro With oil.

Andrade continued to talk about the national crypto plans on his agenda in case he is elected on February 7, 2021:

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

Could the hypothetical Ecuadorian cryptocurrency be another Venezuelan petro?

Dollarization in Ecuador has been a sensitive topic in the public debate. In 1999 the country came adopted the dollar as the official currency. All of this happened in the context of a strong economic and inflationary crisis.

Jamil Mahuad, then president of Ecuador, was removed from office in January 2000, as political parties blamed him for triggering the economic crisis. However, no president has succeeded in lifting the dollarization policy.

In terms of the crypto industry, the Latin American country is not a well-known player in the regional sphere. However, Ecuador has shown some interest in blockchain adoption in the country banking and dairy sectors.

What do you think of a possible Ecuadorian cryptocurrency backed by gold? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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