Bitcoin and other cryptos may now be utilized for business dealings and investments in Cuba, according to the BCC’s legal recognition of crypto. Notably, the central bank initially indicated intentions to adopt and regulate cryptocurrency at the end of August.
Resolution 215 of 2021, for example, includes a clause for a licensing system for cryptocurrency exchanges as well as other cryptocurrency – related service providers functioning in Cuba. Although allowing the usage of cryptocurrency in Cuba, the BCC has cautioned about the dangers connected with it.
As per the BCC, although cryptocurrency works outside of the country’s banking system, its usage presents substantial monetary policy threats and financial stability issues. Cuba’s central bank has cautioned of the possibility of unscrupulous actors using the apparent anonymity of cryptocurrency dealings for illegal purposes.
By accepting cryptocurrency, Cubans may be able to receive simpler remittances from outside, notwithstanding the US embargo. Amid growing pressure from Washington, international money transfer providers such as Western Union have mostly left the nation.
Moreover, the nation is following in the footsteps of El Salvador in adopting Bitcoin in the face of crushing US sanctions and the economic effect of the COVID-19 epidemic. El Salvador was the first nation to recognize Bitcoin as legal currency.
Over the past several years, there has been a surge in crypto interest in Cuba, with cryptocurrencies linked with the prospect of financial independence for several people in the nation. The BCC’s acceptance of cryptocurrencies may be a significant step toward establishing Cuba’s cryptocurrency business as a legitimate sector of the island nation’s economic slump.