Ecuador To Forge Ahead With State-Backed Digital Currency 85
First time accepted submitter jaeztheangel writes Ecuador's government has approved plans to start a new Digital Currency backed by the state. With defaults in recent history, and dwindling oil reserves it will be interesting to see how this decision turns out. From the article: "Congress last month approved legislation to start a digital currency for use alongside the U.S. dollar, the official tender in Ecuador. Once signed into law, the country will begin using the as-yet-unnamed currency as soon as October. A monetary authority will be established to regulate the money, which will be backed by 'liquid assets.'”
What could possibly go wrong? (Score:4, Interesting)
Because, of course, every last man, woman, and child in Ecuador has a PC or other digital currency device, right?
Ignoring the red herring of "digital", this is a bankrupt country trying to build a fiat currency that nobody is going to trust.
Re:Smart (Score:2, Interesting)
Every country in the world of any note relies on the US dollar and financial markets. All that money that China supposedly "loans" the US are actually investments. The US offers the most stable and secure places for investments in the world. If the US dollar or financial system collapses any person or country who has their money tied up in US government bonds and securities will suffer. Also remember that 97% of all outstanding US "Debt" is owned by the Federal Reserve. It is a very fine balancing act to maintain currency values but it can be and has been done for a long time.