What Is Happening In Ecuador With US Dollars?

I didn't even know that the national currency of Ecuador is the US Dollar?

It is!

It is not only the national currency but the dominant form of currency is the paper greenback dollar.

Ecuador is implementing a new electronic currency system that is described here.  Its a Bitcoin oriented site.   Phase I was implemented Christmas Eve 2014 with the ability to create an account on a cell phone.  Bitcoin was banned by Ecuador.  Bitcoiners pissed.

Ecuadorians exchange US paper currency for digital dollars.

Evidently the US Dollars are held to back up 100% of the digital dollars they were exchanged for.  Digital dollars could be exchanged for paper dollars.

It is all voluntary.

There may be association with a bigger picture for Ecuador.  Way down in the long and detailed  description of this bigger picture of a Commons Transition Plan is a statement about the State of Ecuador's role in this plan with one of the specific things being something I like big time:

• The state engages in debt-free public monetary creation and supports a structure of specialized complementary currencies 
•  

Ecuador roll-out of digital currency here.

I speculated in prior blog entries here that Apple Pay might just be a stealth phase I implementation of a debt free monetary system.  Get everybody using it to pay for things instead of credit cards.  Then introduce a cash for clunkers program where the cash is digital and the clunkers are paper currency dollars.  Dangle an incentive.  Paper currency to be held by Apple as 100% reserve.  Digital dollars convertible to paper any time.  Later on pull the plug on convertibility to paper and offer a digital dollar in exchange for a digital dollar.  That is a replay of a paper dollar for a paper dollar after going off the gold standard.

How could debt based money be converted to debt free money through a digital currency conversion system?  Sounds like making gold of of lead but.....if debt money is created out of nothing to become "real money" in circulation (until it is extinguished to nothing later in the loan time line) how, while it exists as what we perceive as currency could it be diverted to become debt free money?

The answer to that would apparently be to absolve the debt that would otherwise be paid off to settle the loan.  How does that happen?  I guess it is called bankruptcy or not having to pay back the loan because you do not have the money.  Some might like "Jubilee" as a better method!  That way deadbeats have no guilt!  On the other hand it would make most all of us winners and the 1% losers?

Back to the question:  How to convert debt money to debt free money that does not go out of existence, ever.  How does a business model based on giving the product away for free work?  Seems to be the same problem but it works for Google.

Money is a sleight of hand trick in the first place.  It seems that it should be susceptible to a sleight of hand trick to turn it into debt free money.  What is that trick?  Is the trick up Apple's sleeve.  The con man always needs a partner to work the mark.  A partner operating in the background.  Google?

Conspiracy Theory!

If the US government enters a partnership with Apple it could produce all the paper dollars necessary to  to provide people with the currency for one to one conversion to debt free digital dollars.

Sounds like an idea.

Keep an eye on Ecuador.  Of course the government has to establish a debt free money system to support an economy based on the commons philosophy.   Debt based capitalist monetary systems do not play well with the concept of the commons.

Ecuador with a foot in the door of positive money. 

There seems not to be too much hard info on the Ecuador system other than general reports.  Where are the details?  This link offers some details.

The only other comparable system is operation in Jordan.  JoMoPay 

A description of the plan at this link:


"Jordan has a 155-percent mobile phone penetration rate, while 75 percent of Jordanian adults do not have bank accounts, according to The Jordan Times.
Mobile operators or companies that issue mobile wallets will have to abide by the CBJ's mobile payment regulations, and deposit collateral at the CBJ that is equivalent to the value of the e-wallets they want to issue.
Future JCB plans include facilitating benefit payments to e-wallets, NFC payments, and international transfers, Bahou said."
Note that there must be a "deposit collateral" Same as a checking account?


BOJ mobile is the app at the iTunes store