I am still waiting to hear how digital or digitized is different from fiat in electronic form. Fiat is fiat, no matter how you slice it. Fiat is 'by decree'.
Crypto currencies function by no decree. They are decentrally produced.
And it's not even by decree that matters, although that is important too. What matters is predictability of supply, which never works for fiat, because governments always tend to overspend and overproduce fiat. Fiat has been around for ages and we all know how it ends every time. So what does Ecuador change here?
Yes, full fledged digital fiat and decentralised cryptocurrencies are a separate animal. One question might be why the average person would want to use something like bitcoin when the government is offering them what they know already in a safer and more convenient form. That's
average people, not us. Not predominately white, educated, tech focused investors and speculators.
And as AnonyMint pointed out, Hong Kong has already started transitioning to this sort of system many years ago(10?) by way of their octopus smart cards. Which are quite convenient and easy to use. And money there is printed by private banks as well which is interesting and different.
Is everyone here really fully convinced of Bitcoin hegemony in the near future?
edit: Altcoins are the only hope.