At the moment, Bitcoin is not legal tender in Ecuador. Bitcoin, like any other cryptocurrency, is not officially supported by the authorities, since its value is based simply on speculation and is not justified by anything.
Despite the fact that bitcoin is not officially allowed in the country, its use is not prohibited. In 1999, the Ecuadorian authorities adopted the US dollar as an official means of payment.
And although the Ecuadorian authorities do not plan to use Bitcoin together with the US dollar as an official means of payment, the country's central bank announced the need for official regulation of digital assets in January 2022. Details of the future law were shared by Banco Central del Ecuador (PIB) manager Guillermo Avellán.
As more and more people in the country use digital assets, the central bank is working on a project to regulate cryptocurrencies.
The proposed regulation does not imply that cryptocurrencies will become legal tender along with the US dollar, as happened in El Salvador, nevertheless, the authorities recognize that cryptocurrencies are an investment asset that needs regulation.
It is assumed that the law that will be adopted will serve to determine the rules of the use of cryptocurrencies in the country, as well as to prevent abuse or illegal actions.
The adoption of the law will allow the citizens of Ecuador to receive a clear and precise regulation that will determine how they can use cryptocurrencies, as well as protect their rights and legitimate interests.
The law is expected to come into force in 2022.
In Ecuador, only 2.73% of the population own cryptocurrencies. Thus, 500,000 people are holders of digital currencies.
Despite the fact that trading bitcoin in the country is not illegal, it is prohibited to use cryptocurrency as an official means of payment.
The widespread use of digital assets in the country is hindered by the fact that the use of electronic money has not gained widespread popularity. Introduced in 2015, Dinero Electronico has not been widely used.
At the same time, it should be noted that banking and financial services are not widespread in the country and only 50% of the adult population have bank accounts.The growing popularity of cryptocurrencies leads to the fact that citizens of the country more actively use cryptocurrencies. Residents of Ecuador are increasingly using digital assets, and thanks to OWNR Wallet, you can now buy cryptocurrency with your credit/debit card.