Ecuador | 2021

Cryptocurrency Adoption and trends in Ecuador in 2021



of Ecuadorians
own cryptocurrency

How many cryptocurrencies owners are there in Ecuador?

It is estimated that over 480 thousand people, 2.73% of Ecuador’s total population, currently own cryptocurrency.(¹)

What is the nature of Cryptocurrencies like in Ecuador?

The country’s central bank issued a statement clarifying that buying and selling bitcoins is not illegal, but using them as a payment method for goods and services is. Enforcement, however, has been lax, and Ecuadorians have shown little interest in dinero electrónico.

Official figures show that over 70 percent of accounts remain unused, and Ecuador’s parliament approved a new law this year which transferred the government-backed cryptocurrency to the private banking system.

Every day, more and more Ecuadorians trade goods and services thanks to Bitcoin and other emerging cryptocurrencies, as evidenced by sellers and buyers listed on Localbitcoin and on several social-media communities.(2)

Cryptocurrencies’s rising popularity in Ecuador

  • Ecuadorian Presidential Candidate Proposes a National Cryptocurrency – January 2021
    An Ecuadorian presidential candidate hinted at creating a cryptocurrency in the country as part of its government agenda. Giovanny Andrade said that the national cryptocurrencies aims to “facilitate” transactions across the country. Cryptocurrencies Could Be Backed by Gold During an interview with Primicias, Andrade, representing the Union Ecuatoriana party, believes its cryptocurrency idea is a crucial part of his country’s proposals. However, he doesn’t want to ride off from Ecuador’s dollarized economy:

  • Cointelegraph: Ecuador’s Dairy Producer Joins Blockchain-Based IBM Pilot Program – March 2020
    The Ecuadorian dairy producer El Ordeño has announced its integration with a blockchain-based system as part of a pilot program called IBM Food Trust, as announced in a press release. According to the IBM News Room, the company wants to use blockchain to monitor its TRU dairy products, incorporating a new packaging model that includes QR codes. By scanning the label with a mobile device, consumers will be able to track the entire journey of the specific dairy product in question, from the farm to the table. Moreover, it provides additional information about the producer, quality centers, cold chains and distribution centers.

  • CNBC: Ecuador becomes the first country to roll out its own digital cash – February 2015
    Ecuador’s Sistema de Dinero Electrónico (electronic money system) kicked off in December by allowing qualifying users to set up accounts, and it will begin acting as a real means of transaction this month. Once the government flips the switch, the South American nation of 16 million will host the first-ever state-run electronic payment system. (Other countries, such as Sweden, use cryptocurrencies widely, but they’re not state-sponsored.) But the Ecuadorean government says the scheme is designed to support its dollar-based monetary system, not replace it.

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