Ecuador recently announced that they plan to create their own digital currency that can be used for transactions within Ecuador. The new currency will be backed by the Ecuadorian Central Bank, and it is thought that it will stimulate the economy and be helpful to consumers who do not have bank accounts or credit cards. Ecuador switched from the Sucre to the U.S. Dollar in the year 2000 after their own currency collapsed. There have long been rumblings that President Correa would like to return to having their own national currency again.
While the dollar will continue to be used alongside the new currency, it makes one wonder if this is the first step toward Ecuador leaving the dollar altogether. If that were to happen, what would be the effect for retirees living in Ecuador? The answer, of course, is that no one knows. However, depending on the strength or weakness of the U.S. Dollar, it may mean that Ecuador will not remain the inexpensive expat retirement destination that it is today. For expats living or planning to retire in Ecuador, it will worth keeping an eye on how the new digital currency fares when it is eventually rolled out.