Ecuador rolls out phase one of state-backed digital currency

After months of anticipation, Ecuador has officially launched the first ever digital currency backed by a nation. Called the Electronic Money System (EMS), it aims to help the nation’s population better manage their finances, while competing with the more popular but officially banned Bitcoin.

EMS is being rolled out in three phases so as not to totally scare the wits out of people in Ecuador. The first phase of the roll out began on Christmas Eve. Called the introductory phase, it lets people create official EMS accounts using their mobile phones. During this phase users can open accounts and change passwords, but they won’t actually be able to get their hands on any EMS readies. The first phase will be in effect until mid-February 2015.

To sign up for an EMS account, it’s necessary to own or at least have access to a mobile phone. All you need to do is dial *153# to access the EMS menu which will then give you instructions on how to setup your account. Users must also supply their citizen’s identity number and provide proof that they voted in recent national elections, a step that’s designed to prevent foreigners from accessing the system.

The second phase of EMS will roll out at the end of February 2015. During this phase, Ecuadorians will be allowed to perform transactions such as reloading, unloading and delivering electronic money to individuals, stores, and business who have also joined the EMS system.

http://siliconangle.com/blog/2015/01/01/ecuador-rolls-out-phase-one-of-state-backed-digital-currency/