Ecuador Turning to Virtual Currency After Oil Loans
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After mortgaging most of Ecuador’s oil and gold to finance spending, President Rafael Correa is planning to create a virtual currency that financial professionals say his government could use to pay bills.
Congress last month approved legislation to start a digital currency for use alongside the U.S. dollar, the official tender in Ecuador. Once signed into law, the country will begin using the as-yet-unnamed currency as soon as October. A monetary authority will be established to regulate the money, which will be backed by “liquid assets.”