However, in the Andean country, cryptocurrencies are not legally recognized as legal tender, nor as a means of payment.
In Ecuador, cryptocurrencies are not legal tender, nor a recognized means of payment; however, there is no law or regulation that prohibits the purchase and sale of crypto (short for cryptocurrency), which is a speculative asset that has reached high prices in international markets.
For this reason, there are already ATMs in the country that allow you to buy or sell cryptocurrencies such as bitcoin, litecoin, dash and others. In total, there are three ATMs located in Quito and Cuenca.
To buy, the user needs a digital wallet in which all cryptocurrencies will be stored, then he must choose the cryptocurrency he wants to buy; then he scans the address of the digital wallet and must insert the cash; at the end he must choose the option “buy”. Once the purchase is confirmed, the user will receive the coins to his wallet address.
The minimum amount to sell is US$20, according to the promotional video shown at ATMs installed in Quito. The sale of crypto, with which the user will receive cash, is done in four steps, according to the website.
First, the cryptocurrency to be sold is selected, then the amount of cash to be received is chosen, then the user must send the cryptocurrencies to an address specified in a QR code that the ATM will print; finally, the QR code has to be scanned at the same ATM and then the dollars will be issued in cash.
This newspaper visited one of the shopping centers in the north of Quito where the ATMs are located. A saleswoman, who preferred not to give her name, said that “there are quite a few people who come for cryptocurrencies.” The woman said that she had been working at the shopping center for three months and when she arrived the ATMs were already there.
In fact, ATMs have been working since last year. On the other hand, in 2018 there was a global “fever” for cryptocurrencies due to the high valuation achieved by bitcoin .
At that time, the Central Bank of Ecuador (BCE) and the Monetary and Financial Board warned that the circulation and receipt of unauthorized money is prohibited. However, the BCE clarified that the purchase and sale of cryptocurrencies “is not prohibited through the internet.”
The Monetary and Financial Organic Code, in article 98, generally prohibits “the circulation and receipt of currency and money not authorized by the Monetary and Financial Policy and Regulation Board.”
In August 2024, in response to concerns raised by the iris scan carried out in Ecuador by the Worldcoin project (through which cryptocurrencies were delivered), the Central Bank warned that it would bring to the attention of the Prosecutor's Office, for investigation and sanction, the cases it identifies in which cryptoassets are used as a means of payment , since they are not legal tender, nor a means of payment authorized by the Monetary Policy and Regulation Board.
A study by the American firm Chainalysis revealed that between June 2022 and July 2023, Ecuador received approximately US$7 billion in cryptocurrencies, according to the Geography of Cryptocurrencies Report in 2023.
