The growing popularity of Bitcoin cryptocurrency fosters competition on the market of digital currency.
The most recent precedent took place in Ecuador, which, after the countries of Latin America and Bolivia, opposed decentralized money.
Bitcoin ban is justified by the dire need of creating in Ecuador absolutely new principles for a new, state-managed currency.
With 91 votes in favor of the amendments to the country’s existing monetary and financial laws, the National Assembly approved a bill that now waits for President Rafael Correa to be signed.
What is paradoxical is that the law permits the government to make payments via digital money; however, such decentralized currencies as Bitcoin would be prohibited from now on.
As soon as the law comes into the effect all the companies with Bitcoin circulation will be prosecuted up to the cessation of their activity, or else the government will resort to the Bitcoin and similar assets confiscation.
Instead of the decentralized Bitcoin currency, as an alternative to it, the Ecuador elite suggests creating its own digital currency which would be backed by the assets of the Banco Central del Ecuador, the nation’s central bank.
The National Assembly will oversee the new currency while the central bank will develop and integrate it into the broader financial system. The new currency is supposed to be pegged to the dollar, Ecuador’s official currency, though the exchange rate is not certain yet.
The ongoing changes in the sphere of digital economy and the world of cryptocurrency exchange show that Bitcoin became well-proven in the world so that several countries try to compete with it by establishing certain prohibitions and installing their own currency.
However, let’s face the truth, any digital currency subservient to the State won’t be even the half so popular as decentralized and international Bitcoin.
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