Ecuador in electronic money u-turn

Ecuador's central bank will retain control of the country's electronic money system.

A bill that affirms the central bank as administrator of the system and introduces other changes in a bid to strengthen the economy was approved by lawmakers, state news agency Andes reported.

The original text had called for the country's commercial banks to run it.

The platform, known as Efectivo Desde Mi Celular, was launched in 2014.

Ecuador's government and banks want to reduce the amount of cash in circulation and boost electronic payments.

Lawmaker Gabriela Larreátegui criticized how the electronic money system had been run and the decision taken by the national assembly: "Strengthening these electronic payment options was important for the country, but it was withdrawn [from the private banks] not for substantive reasons, but because of a verbal attack on the banks."

The president of the national assembly's economic regime committee, Pabel Muñoz, said the decision does not stop commercial banks from implementing measures to promote digital payments.

The approved bill also contains stimulus measures for SMEs and companies that reinvest profits. It now goes to the executive.

Former president Rafael Correa has criticized his successor and ex-ally Lenín Moreno (pictured) for "collaborating with the right, with bankers." Correa has also threatened to push for the creation of a constituent assembly, which he would seek to lead, if "they continue destroying what has been built."

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In related news, Moreno has told the country's electoral council to hold a referendum which will include a question asking Ecuadorans whether they want to scrap a law that allows presidents to be re-elected indefinitely.

In 2015, when Correa was in office, the national assembly lifted a limit on presidential terms.

The once close relationship between the two politicians began deteriorating this year when Moreno questioned Correa's handling of the economy.

Ecuador is mired in debt. The economy, however, is gathering strength.

The economy "is recovering briskly from the 2016 recession and activity has been stronger than anticipated," the IMF said in a statement this week.