Banking: electronic money must be injected confidence

Ecuadornews:

In the country, the use of electronic money reaches $9.6 million dollars (balance that remains in the accounts), down below of what the debit cards move per month ($100 million). It is a system that, despite having more than three years of validity, does not take off due to “lack of confidence”.

Julio José Prado, executive president of the Association of Private Banks of Ecuador (Asobanca) believes so. For him, a currency or a payment mechanism, whatever these are, have to respond to a topic of trust; if it does not generate that in the user, it simply does not progress. One alternative, he said, is to tie the system to a savings account or a current account.

But why is electronic money bad in the hands of the Central Bank of Ecuador and if it happens to private banks, no? Prado indicated to EXPRESO Diary that it is required to give the certainty that the project is a service, to bank and include. He pointed out that in the world there are 270 types of mobile wallets that work, where governments only regulate or control it; and can not be used for what Greece’s former finance minister, Yanis Varoufakis, said: to pay suppliers, salaries and bonuses.

The union leader acknowledged that there is nothing yet determined for them to manage the project, rather than the promise of President Lenin Moreno to review the project.

But why electronic money can take off into the hands of private banks? He reiterated that the key is to build trust. For Prado, the project is a good idea, but it must be applied well as it is done in other countries, where it is not a parallel, inorganic currency; but is tied to a financial account.

Since 2014 to date, $29 million has been used in three million transactions, of electronic money.

According to Ricardo Quiroga, consultant and spokesman for the Electronic Money project in Ecuador, electronic money is coming to citizens. Each day 200 to 300 accounts are being activated. (I)

Source: http://www.expreso.ec/economia/banca-al-dinero-electronico-hay-que-inyectarle-confianza-NC1455359