Guillermo Avellán, the General Manager of the Ecuadoran Central Bank, recently addressed the legal status of cryptocurrency in Ecuador. While he confirmed that crypto is not illegal, he emphasized the need for regulatory measures to govern trading activities in the country.
Central Bank’s Warning on Crypto Volatility
The Central Bank of Ecuador (BCE) issued a statement that raised concerns among citizens about the volatility of cryptocurrencies. In the statement, the BCE reiterated that crypto does not qualify as legal tender in Ecuador. This stance comes amid the growing adoption of Worldcoin (WLD) in the region.
No Crypto Ban Planned, Says Avellán
Avellán responded to speculation about a potential ban on cryptocurrency trading by clarifying that crypto investments are not prohibited in Ecuador. He took to X (formerly Twitter) to explain that the Central Bank’s primary role is to ensure the United States dollar remains the only authorized means of payment in the country.
Moreover, Avellán highlighted the urgent need for a regulatory framework to govern crypto investments. He stressed the importance of protecting investors, promoting innovation, and maintaining dollarization. Without legal boundaries, he warned, cryptocurrencies could pose significant risks.
Rising Interest in Worldcoin
The growing popularity of Worldcoin in Ecuador has attracted the attention of regulatory bodies. Media reports suggest that thousands of Ecuadorians have flocked to Worldcoin scanning centers. As a result, the Superintendency of Companies, Securities, and Insurance expressed concern about unregulated activities associated with Worldcoin. It advised citizens to refrain from sharing their biometric data, pointing out that Worldcoin is not regulated by the Ecuadoran state.
Worldcoin’s increasing popularity across Latin America has led to more regulatory challenges. Consequently, the operator has begun adjusting its data collection practices in countries like Chile.
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