The new digital currency system is set up to be used alongside the USD. The Ecuadorian digital dollar, now called the Electronic Money System (EMS) was announced while keeping those who cannot afford traditional banking in mind.
It allows poor Ecuadorian citizens to receive and send payments with their mobile phones, similar to M-Pesa and other services widely adopted in African nations. The Central Bank foresees EMS being used in the future to pay government bureaucrats in a “hygienic manner”, minimizing the possibility of corruption and graft.
EMS implementation is designed to happen in three distinct phases. The first phase was live from 24 December 2014 to 25 February 2015. During this phase, people were allowed to create EMS accounts and make changes to their login credentials. The EMS adoption is currently in the second phase, allowing users to perform transactions like depositing, sending and receiving money to and from mobile wallet. Third phase is likely to set in sometime during the end of 2015 where features for paying utility bills and taxes to the government will be included to EMS.
EMS will hold monopoly for digital currency in the Ecuadorian economy as the bill authorizing the implementation of Central Bank controlled digital currency bans other digital currencies including Bitcoin. For wider adoption of EMS, the government has to conduct educational programs across the country to make people understand the concept of digital currency, its advantages and the benefits of digital currency on the country’s economy and individuals’ living standards.
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