"The Evolution of Sucre: From National Currency to Innovative Cryptocurrency"
Introduction of the Sucre (1884)
The sucre was adopted as the official currency of Ecuador in 1884, replacing the Ecuadorian peso during the presidency of José María Plácido Caamaño. The currency was named in honor of Marshal Antonio José de Sucre. The introduction of the sucre aimed to stabilize the economy and create a more solid monetary system.
First Period of the Sucre (1884-1920)
During its early years, the sucre maintained relative stability, supported by an economy reliant on cocoa exports. Despite World War I and falling cocoa prices, the value of the sucre remained relatively close to the dollar until 1920.
Crisis and Devaluation (1920-1940)
The Great Depression of 1929 significantly impacted the Ecuadorian economy, leading to the devaluation of the sucre. In 1932, the exchange rate was 5 sucres per dollar, but devaluation continued through the late 1930s, further eroding its value.
World War II and Postwar (1940-1960)
During World War II, the demand for agricultural products allowed for some stability of the sucre. In the 1950s, the economy grew modestly, keeping the value of the sucre relatively stable compared to the dollar.
Crisis and Successive Devaluations (1960-1980)
From the 1960s, Ecuador faced recurrent inflation and devaluation of the sucre. By 1970, the exchange rate was approximately 20 sucres per dollar. The 1973 oil crisis initially benefited Ecuador, but inflation and fiscal deficits led to further devaluations.
Years of Crisis and Hyperinflation (1980-2000)
The 1980s were critical for the sucre, with the exchange rate reaching 42 sucres per dollar in 1983 and climbing to 800 sucres per dollar in 1990. The economic crisis deepened in the 1990s, reaching an exchange rate of 25,000 sucres per dollar in 1999 due to hyperinflation and loss of confidence.
Dollarization (2000)
In January 2000, President Jamil Mahuad announced dollarization to stabilize the economy. The final rate was 25,000 sucres per dollar. Dollarization reduced inflation and restored confidence in the financial system.
SUCRE (Unified System of Regional Compensation for Payments) (2010-2017)
The SUCRE (Unified System of Regional Compensation for Payments) was implemented in 2010 by the Bolivarian Alliance for the Peoples of Our America (ALBA) to facilitate commercial transactions between countries like Venezuela, Bolivia, Nicaragua, Cuba, and Ecuador, without relying on the U.S. dollar. This system allowed for the compensation of payments between the central banks of member countries, conducting transactions in national currencies settled in SUCRE, which reduced transaction costs and promoted regional economic integration. However, despite its innovative purpose, SUCRE faced significant challenges such as economic crises in member countries, trade imbalances, and limited adoption, which hindered its sustainability and led to its discontinuation around 2017.
SUCRE Finance Protocol (2024- ?)
The SUCRE Protocol, starting in mid-2024, is a decentralized cryptocurrency designed to unify fiat and crypto systems through Bitcoin rewards, facilitating secure, fast, and low-cost transactions within the Web3 ecosystem. With a total supply of 1,400,000,000 tokens, the initial distribution includes 200 million for the team and developers, 200 million for advisors and strategic investors, 500 million for the pre-sale on PinkSale, 150 million for the liquidity pool, 150 million for future development and expansion, 100 million for incentive programs and rewards, and 100 million for airdrops. The SUCRE network uses public blockchain and smart contracts to ensure transparency, security, and efficiency in all transactions.