Ecuador's Central Bank: We Don't Have the Authority to Ban Cryptocurrencies
Date: 2024-08-27 Author: Oliver Abernathy Categories: IN WORLD
His comments come after a recent statement by the Central Bank of Ecuador, which warned citizens about the high volatility of cryptocurrencies. The statement also noted that cryptocurrency does not have the status of legal tender in the country. This statement comes amid growing interest in Worldcoin (WLD) in Ecuador.
The bank's statement raised concerns about a possible ban on cryptocurrency trading. However, Avellan clarified on the X platform (formerly Twitter) that cryptocurrency is "not banned" in Ecuador.
"The Central Bank has never banned investments in crypto assets, as this is not within our authority," he said.
Avellan explained that the Central Bank has the right to ensure that the US dollar remains the only legal tender in the country. However, he also noted that Ecuador needs a law regulating cryptocurrency investment to protect investors, encourage innovation, and strengthen dollarization.
Avellan stressed that cryptocurrency could pose “risks” if it is commercialized outside the legal framework.
Ecuador has previously been criticized by some international organizations for its lack of regulation of cryptocurrencies. However, interest in the topic has increased since Worldcoin opened offices in the country earlier this year.
Interest in WLD in Ecuador Rise Local media reported that “thousands of Ecuadorians” have flocked to Worldcoin scanning centers. This has attracted the attention of authorities such as the Superintendent of Companies, Securities, and Insurance.
On August 6, the Superintendent expressed concern over media and social media reports of alleged violations by Worldcoin. It also emphasized that Worldcoin is not regulated by Ecuadorian authorities and urged citizens “not to share” their biometric data.
WLD's popularity has skyrocketed in Latin America this year, which has also prompted regulatory action, forcing operator Worldcoin to change its data collection practices in countries like Chile.
