Believing it to be a ‘socio-economic interest’ of theirs, the government of Cuba has made a decision to accept cryptocurrency in the country and formally regulate it likewise.
Similar to the move played by the country of El Salvador, which decided to make crypto legal tender, the Latin American country of Cuba has also decided to make cryptocurrency an official payment alternative to their standard alternative currency. The government of Cuba clearly stated that the use of these digital assets is an opportunity for the country to grow and get recognition in the financial sector, so crypto will be official and kept in the eyes of regulatory authorities.
Legalization in Progress
According to a resolution submitted in the Gazette of Cuba, it was found out that the Central Bank of Cuba is working on rules and regulations on how cryptocurrencies will be allowed to operate. The Central Bank will also be making sure that the requirements of the operating license for crypto dealers are very clear in order to maintain transparency.
In regards to many previous reports, which hinted at the Cuban President’s interest in crypto, it was found out that the President of Cuba had been working on officially bringing cryptocurrencies into the country. A good reason for this move of adopting crypto is the severe economic loss that has been caused by the still-running Covid-19 Pandemic. It’s not those cryptocurrencies weren’t being used before in the country, as many crypto-based services were being used for years now, distant from regulations. Cryptocurrencies were being used to dodge U.S restrictions that stopped Cuban people from getting into a variety of financial markets and take advantage of the United States Dollar currency.
Cubans Seeking Alternatives
According to studies and analysis of the cryptocurrency activity in Cuban territory, it was revealed that almost 100,000 or so Cuban people were using cryptocurrencies that include BTC, ETH, and a few others to deal with remittances, donations, and other sorts of online payments. This is because the people of Cuba are not able to use international Credit and Debit cards, which makes sending and receiving payments internationally, quite problematic. So, with the use of Cryptocurrencies, they could easily get done with their payments in no time, highlighting financial improvement potential inside the country.