“Dollars, the backup of the electronic currency”

The Association of Private Banks of Ecuador (ABPE) yesterday publicly announced its disagreement with the electronic money system proposed by the Central Bank.

Through a statement published in newspapers, the union expressed its concern, since although the electronic currency, according to Article 94 of the Monetary and Financial Code is equivalent to the dollar, it must be backed.

According to Article 101 of the same regulation, this backing consists of liquid assets of the Central Bank.

The ABPE emphasizes that electronic money must be “compulsorily and by law exclusively backed by the US dollar,” and not by other assets of the Central Bank. Especially because the authorities indicate that one of the reasons that drive the use of this payment mechanism is the “temporary illiquidity of the state.”

Source: http://expreso.ec/economia/dolares-respaldo-de-moneda-electronica-AA389406