I don't know what Ecuador intends to do actually. perhaps they don't know either.
If I had to guess, it would probably be just that: a system for e-payments using some cryptocurrency techniques, with a currency controlled and backed by their Central Bank, perhaps pegged to the dollar, perhaps not, for use by their citizens.
http://money.cnn.com/2013/12/10/technology/bitcoin-jpmorgan/The difference between digital banking accounts we have now and the digital currencies, is each citizen has to register for a wallet. One wallet for one citizen. Like your Social Security Number in the USA.
Your wallet can them be moved around to different banks.
Digital currencies is a code word for complete government tracking and total loss of bank privacy. Your bank will still hold your balance, but
every transaction gets cleared through government servers.
As Armstrong said, Ecuador is the trial run for what is coming to every country in the world after 2015.75 when the global economy turns down (which will provide the excuses and justifications for the changes along with the bailins and need to lockup every person's balances).
Bitcoin was planted to condition to world to "digital currencies".
We don't have much time remaining. We are dicking around.