Nikolas Sargeant
The General Manager of Ecuador's Central Bank, Guillermo Avellán, has stated that cryptocurrency is not illegal in the country but believes trading should be regulated. This clarification comes after a recent official statement from the Central Bank of Ecuador (BCE) cautioning citizens about crypto volatility.
The BCE's statement highlighted that cryptocurrency doesn't meet the requirements for legal tender in Ecuador. This announcement coincides with the growing adoption of Worldcoin (WLD) in the country.
Ecuador's Central Bank: No Plans to Ban Cryptocurrency
Avellán took to social media to address concerns about a potential crypto ban, stating, "At no time has the ECB banned investment in cryptoassets, as this is not within our powers to do so." He emphasized that the Central Bank's role is to ensure that the U.S. dollar remains the only authorized means of payment in Ecuador.
However, Avellán stressed the need for legislation to regulate crypto investments, protect investors, promote innovation, and strengthen dollarization. He warned of potential risks if crypto assets are traded outside a legal framework.
Worldcoin Gains Traction in Ecuador Amid Regulatory Scrutiny
The rise of Worldcoin in Ecuador has drawn attention from regulatory bodies. The Superintendency of Companies, Securities, and Insurance expressed concern about Worldcoin's activities, particularly regarding the collection of biometric data.
As Worldcoin's popularity surges in Latin America, it faces increased scrutiny, leading to changes in data collection practices in countries like Chile.
