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Guillermo Avellán, General Manager of the Central Bank of Ecuador, stated that cryptocurrency is not illegal in the country but argued that trading activity requires regulation.
His remarks followed a recent official statement from the Central Bank of Ecuador (BCE) that warned citizens about the volatility of cryptocurrencies.
The statement also clarified that crypto assets do not meet the requirements to be considered legal tender in the nation. This clarification emerged as adoption of Worldcoin (WLD) continues to accelerate in Ecuador.
Worldcoin prices over the past seven days. (Source: CoinGecko)
Ecuador Central Bank: No Crypto Ban on the Cards
The bank’s statement appeared to fuel fears that it was considering a ban on cryptocurrency trading.
However, Avellán posted on X to clarify that cryptocurrency is “not prohibited” in Ecuador.
“At no time has the ECB banned investment in cryptoassets, as this is not within our powers to do so.”
— Guillermo Avellán, General Manager of the Central Bank of Ecuador
He explained:
“The Central Bank has the power to control that the only means of payment authorized in the country is the United States dollar.”
Avellán also noted that Ecuador “needs a law that regulates investment in cryptoassets, in order to protect investors, promote innovation, and strengthen dollarization.”
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He claimed that crypto could pose “risks” if it were “commercialized as assets outside the legal framework.”
Some international bodies have previously criticized Ecuador for its lack of crypto regulation.
Cryptocurrency has come under increased scrutiny since Worldcoin opened offices in the country earlier this year.
In the age of AI, proof of humanness technologies like World ID aren’t a luxury, they’re a necessity. pic.twitter.com/HzZe3JQ7Yl
— Worldcoin (@worldcoin) August 22, 2024
WLD Interest High in Ecuador
Media outlets report that “thousands of Ecuadorians” have since “flocked to Worldcoin scanning centers.”
This surge in activity has drawn a response from the Superintendency of Companies, Securities, and Insurance.
The Superintendency stated on August 6 that it is “concerned about news circulating in the media and social media networks about irregular activity carried out [by] Worldcoin.”
The Superintendency noted that Worldcoin is not regulated by the Ecuadoran state. It also encouraged citizens “not to hand over” their biometric data.
WLD’s popularity has surged in Latin America this year. However, this growth has also triggered regulatory pushback, leading the Worldcoin operator to adjust its data collection methods in countries such as Chile.
El presidente de Ecuador, Daniel Noboa, es el mandatario sudamericano con mayor imagen positiva en agosto.
Cómo sigue el ranking:https://t.co/ewclJKxGH4— Bloomberg Línea (@BloombergLinea_) August 22, 2024
The post Ecuador Central Bank: We Lack the Authority to Ban Crypto appeared first on Cryptonews.
