“The dominant lion eats the cubs of the pack.” Former vice president Alberto Dahik plotted in a simple way the mechanism proposed by the government for the use of electronic money, within the bill for the balance of Public Finances. As the scheme is laid down, “the Central Bank of Ecuador (BCE) will suck as a high pressure pump the resources that otherwise would be in the financial system.”
“Now, if before the fall in oil prices the economic model of the Government had consumed the liquidity of depositors through reforms to laws that were changing the original rules of dollarization, allowing to touch that liquidity that should have not been touched.”
Then, who assures us that the money (dollars) of the public given in exchange for electronic money will not be spent? At that moment the government can say: “I create this privileged bond backed by the snows of Chimborazo and the waters of the Guayas River, which is a AAA, premium, diamond bond, the best bond, and I am placing it there to support the deposits of those who have electronic money, and I will take those dollars, as the previous governments have already taken them away.”
The evidence of the past of the CB is that the disappearance of the deposits of all Ecuadorians was allowed, excluding those of private banks because they were afraid, but the rest flew, why is not gonna happen the same with public deposits?