Ecuador banned bitcoins to create their own digital currency
Ecador moved into the 21st century last month when it outlawed Bitcoin and created its own digital currency. Observers have watched the creation of new banking laws these last few months with keen interest as the role of the national government has increased dramatically. Understand that bankers in Ecuador have historically been irresponsible and even their current practices raise eyebrows. Loans are difficult to acquire, expensive and short-term. Banks have gone out of business with depressing regularity the last 15 years and many personal fortunes have been lost. This explains in large part why anyone with money buys land and rental properties. So banking regulation hasn’t seemed out of line.
In 1999 the Ecuadorian national currency, the Sucre, collapsed. Businesses stopped accepting it as payment and demanded dollars. Hundreds of thousands of Ecuadorians living in the United States sent cash back to their families. The national government gave up and…
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