Cooperatives drift towards electronic money
The Association of Private Banks of Ecuador (Asobanca) hopes that the economic measures to be announced next week by President Lenin Moreno include the reform of the Monetary and Financial Code to materialize the transfer of electronic money to the National Financial System (public and private banks, and credit unions).
Without this reform, private banks will not be able to implement their own platform, scheduled for January 2018, said Julio José Prado, president of Asobanca, during the Latin American Congress on Banking Security (Celaes), held yesterday in Quito.
At least two sections of the bill should be modified. The first is Section 94, which states that the Central Bank of Ecuador “is the only body authorized to provide and manage physical or electronic money.”
The second is Section 101 because it states that “electronic money will circulate backed by liquid assets, based on the policies and regulations issued by the Monetary and Financial Policy and Regulation Board.” According to Prado, the changes are essential to have the confidence that finally the project will work. (I)