Ecuador will be the last (latest), not the first, country to create its own digital national currency. Ecuador does not currently have its own digital national currency because it currently does not have its own national currency. It is a dollarized economy. Ecuador uses the mainly digital US Dollar as mainly digital medium of exchange in the country. 92% of the US Dollar money supply inside the Ecuadorian economy is exchanged in a digital USD format daily.
All countries issuing fiat money have digital currencies for a long time already. 92% of the world´s money supply is in the form of digital fiat currencies. These digital fiat currencies were/are created in decentralized commercial banks via decentralized digital fractional reserve banking.
Sweden´s central bank does not require Swedish commercial banks to keep reserves with the Riksbank. It is the oldest central bank in the world.
Fiat digital currencies (all currencies in the world) are not centrally created. They are digitally created in a decentralized way in the various national commercial banks via decentralized digital fractional reserve banking.
Nicolaas Smith
Copyright (c) 2005-2014 Nicolaas J Smith. All rights reserved. No reproduction without permission.
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