Ecuador Central Bank: We Do Not Have Power to Ban Crypto

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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Last updated:

August 26, 2024 23:00 EDT

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The General Manager of the Ecuadoran Central Bank Guillermo Avellán says that crypto is not illegal in the country, but thinks trading must be regulated.

His comments come in the wake of a recent official Central Bank of Ecuador (BCE) statement that warned citizens about the volatility of crypto.

The statement also explained that crypto did not meet the requirements of legal tender in the nation. And it came as Worldcoin (WLD) adoption continues to gather pace in Ecuador.

Ecuador Central Bank: No Crypto Ban on the Cards

The bank’s statement appears to have stoked fears that it is contemplating a ban on crypto trading.

But Avellán posted on X to clarify that crypto 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 Ecuadoran Central Bank

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.”

However, Avellán also opined that Ecuador “needs a law that regulates investment in cryptoassets, in order to protect investors, promote innovation, and strengthen dollarization.”

He claimed that crypto could bring about “risks” if it were “commercialized assets outside the legal framework.”

Some international bodies have previously criticized Ecuador for its lack of crypto regulation.

But crypto has come under increased scrutiny since Worldcoin offices opened in the country earlier this year.

WLD Interest High in Ecuador

Media outlets say “thousands of Ecuadorians” have since “flocked to Worldcoin scanning centers.”

This has drawn a response from the likes of the Superintendency of Companies, Securities, and Insurance.

The Superintendency said 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 has noted that Worldcoin is not regulated by the Ecuadoran state. It also encouraged citizens “not to hand over” their biometric data.

WLD popularity has surged in Latin America this year. But this has also led to regulatory pushback, with the Worldcoin operator moving to change the way it collects data in nations like Chile.