The “Banco Central del Ecuador” (Central Bank) product was attacked due to a conceptual error, said Cruz. The promotion of alternative means of payment will be shared. The Law of Economic Reactivation fulfills the purpose of strengthening dollarization, said Christian Cruz, superintendent of Banks of Ecuador, who considers that the times are sufficient for the National Assembly to resolve this year whether or not to comply with the presidential veto. Cruz agrees with the changes incorporated in the Executive’s objection. The superintendent reflected on the task that the financial system will carry out to generate trust among the citizens, allowing the massification of electronic means of payment.
Does the change for a third party to provide the credit information service respond to the letter sent by the United States Deputy of Commerce for the Western Hemisphere, John Melle?
The motivation of the veto will be known by the Executive. We believe that the original spirit of the bill that is to democratize information to the citizen is maintained. So that all the users of the financial system have clear what is said of them. We are not against a third party providing the service.
How will it work?
The management has some stages. The citizenship consultation, which will be in the control body, will be free for all citizens to access through the website of the Superintendency of Banks. You can do it as many times as you want, freely, above all for free. Other stages are when the financial or non-financial institutions that give credit need to consult. Another is the value-added services, development of specific credit models, etc. The information must be free for the user. If a third party wants to consult your information, it is fine to pay for access. That data does not belong to the Superintendency of Banks or the credit bureau, it belongs to the debtor.
What will be the future of the Equifax credit bureau?
Once the law is approved, we must see how we are going to work in the Superintendency of Banks. The credit information of the cooperatives and work in companies must be compiled with the Superintendence of Popular and Solidarity Economy. Once we have that we will talk about the next stage, which is the participation of third parties.
What was the error so that the electronic money has not taken off?
This mechanism, badly called ‘electronic money’, was only an alternative means of payment as well as a credit or debit card. As it was designed, with the legal and normative part, it was no more than a means of additional payment, in no way could it be thought that it was money. In other countries it can be called ‘electronic wallet’ because to transact with the cell phone you do not necessarily have to open a new account. The name was always wrong because no money is issued and on that concept a political attack was generated on the product and on trust in the Central Bank. Now that he goes to the bank he will have to restructure it, rename it to generate trust. It does not matter who manages it, but the citizens use it and gradually stop using paper money. Either one (Central or financial system) will do it well.
Does the shared promotion of electronic means of payment refer to the promotion or joint administration between the Central and the financial system?
There is no shared system. This will be done by private banks and savings and credit cooperatives. The promotion can be altogether, because it is not only an interest of the bank, but also of the economy of the country to use alternative means of payment.
The veto provides that the ground transportation of Decentralized Autonomous Governments exceeding 200,000 inhabitants add an electronic means for the collection of tickets, will this be mandatory?
The rule allows time for large cities to incorporate these electronic payment mechanisms. It is not saying that you should welcome one in particular, each city can say which is the best. There are many mechanisms that are already used. In other countries they have integrated systems; For example, for the subway, people almost do not pay for a ticket and if they want to cancel, they have to make a long line. It will be a payment option, but it is important that it be incorporated in all the units in an integral manner.
Under what criteria will the review of financial costs be made?
That will be attribution of the Monetary Board. The Superintendency of Banks will analyze the costs and the number of transactions. As the law says, if you seek to mass (the use of electronic media) and the transactional number grows, you should also review those costs that allow and encourage growth; that is to say, that people call attention to use that service and that the price is not an access barrier.
What moments are going to be considered as ‘exceptional cases’ for the bank to cover the demand for liquidity? What goals will the Monetary Board set?
The goal is the one proposed by the same bank (reduce $ 800 million in cash per year). They pledged that by using and massifying alternative means of payment that would translate into a decrease in the demand for physical notes. But what happens if one bank tries harder and another less? If there is a global objective of the system, the idea is that the bank that has not made an effort has to cover the corresponding share with its own assets. The bank that complies will not have to bring the resources. (I)