Many items have been used as commodity money such as naturally scarce precious metals, cowry shells, barley, beads etc.
Paper currency is perhapsthe most common type of physical money today. However, objects of gold or silver present many of money's essential properties.
Ecuador, known in the colonial period as Quito(and then four times its size), was administered as part of New Granada, along with Colombia and Venezuela. It shared the common Spanish-American monetary system, based on the silver peso and the goldescudo, current throughout Spanish America. Gold dust and silver bars, smelted at Riobamba, circulated, often in preference to coin.
1822-1830 Gran Colombia
Quito was part of Gran Colombia until1830 as Departamento del Sur. Gran Colombia's monetary regulations retained the old Spanish colonial system.
1830-1836 State of Ecuador
Quito separated from Gran Colombia and adopted a constitutionon September 23, 1830 as State of Ecuador in the Republic of Colombia, which reflected the desire of President Juan José Flores for confederation.
After Ecuador became "República del Ecuador" on June28, 1835, The minting of 1 and 2 escudo coins ceased because of an influx of counterfeits of these coins. In their place, President Vicente Rocafuerte authorized a media onza (4-escudo or doblón de aquatro).
The ecuatorian currency was suffering many changes, like a
Silver coin and Gold coin
1846-1856 appeared Peso fuerte
===Paper=== Banco de Circulación y Descuento deManuel Antonio de Luzarraga, Guayaquil, issued Ecuador's first banknotes in 1859 in denominations of 1, 4, 5, 10, and 20 pesos. All its notes were redeemed.
In 1877 President Ignacio deVeintimilla authorized the free circulation of coin
1884-1898 Sucre (silver standard)
Ecuador's monetary unit, the peso, was renamed sucre (decree of March 22, 1884, effective April 1