Ecuador becomes the first country to roll out its own digital cash
The other day we were discussing the possibility of state-made cryptographic coins for book money creation by banks.
In such a scenario, banks would issue digital money against credit following the pattern of book money creation. At the end of the day, there would be digital cash pegged to legal tender besides the usual metal coins and paper monies.
As central banks traditionally mint and print the national currency of their respective countries, central banks would have to authorize commercial banks to perform such activities. Not surprisingly, a central bank in an emerging market is already taking steps into this direction. A few weeks ago the central bank of Ecuador rolled out the first government schema utilizing digital currency. It is designed to support the existing monetary system, not replace it.