Ecuador's Central Bank May Regulate Cryptocurrencies This Year

The Central Bank of Ecuador plans to prepare and publish cryptocurrency-related regulations this year.

The announcement was made by central bank governor Guillermo Avellan in an interview. When asked about the state of cryptocurrency regulation in the country and how it appears to be lagging compared to other countries in the region, Avellan said: The central bank is working on a project to regulate cryptocurrencies, bearing in mind that the currency code states that the U.S. dollar is the only currency in the country legal tender.

Avellan further explained that due to the volatility associated with these assets, the new regulations will not make Bitcoin or any cryptocurrency legal tender, as happened in El Salvador following the ratification of the Bitcoin law. Instead, the regulation will aim to bring clarity to the status of cryptocurrencies in the country.