Cuba plans to recognize crypto for payments
Cuba's government said it wants to recognize and regulate the use of cryptocurrencies for payments on the island.
Cuba's government wants to regulate cryptocurrencies
A resolution published in the Official Gazette states that the Central Bank of Cuba wants to regulate cryptocurrencies and determine how services providers will be licensed within Cuba. The report also indicated that Cuba's government and the Central Bank want to recognize cryptocurrencies for payments.Earlier this year, Cuba's President -Miguel Díaz Canel explored possible ways to introduce cryptocurrencies in collaboration with other authorities in the country to overcome the financial turmoil that affected Cuba during the COVID -19 pandemic.
Bitcoin could be a reasonable alternative for Cuba
Cuba's economy has been suffering for years, but it took another hit when the former U.S. government, President Trump, imposed new sanctions and crippled the use of the dollar. A recent estimate by a senior Cuban ministry official, Johana Tabalada, noted that these measures had cost the country about $20 billion.Because of the problems with the Cuban economy, tech-savvy citizens are already using cryptocurrencies for their long distant transactions or to evade government regulations. The fact that Bitcoin and some other cryptocurrencies are decentralized could make them a viable alternative for Cuba, given the damage in the past.
El Salvador was the first nation to accept BTC as legal tender. Its law goes into effect in less than two weeks. The reason the country accepted Bitcoin as legal tender is to encourage remittances from its citizens living abroad.
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