Cuba will recognize and regulate virtual currencies, including the world's largest digital currency Bitcoin, on the basis of "reasons of social and economic interest"...
According to CNBC, Resolution 215, published in the Cuban Gazette on August 26, states that the Central Bank of Cuba will issue new regulations to regulate virtual currencies. Service providers related to virtual currencies will need a license from the central bank to continue operating.
Before Cuba recognized virtual currency, another country in the Americas, El Salvador, made Bitcoin an official means of payment. Cuba's move is said to help the country reduce the impact of the economic embargo imposed by the US.
“Cuban recognition of cryptocurrencies is a historic turning point,” said London-based financial technology data analyst Boaz Sobrado, who spent four years working in Cuba's virtual currency sector.
Sending and receiving money between the US and Cuba has been extremely difficult under US President Donald Trump, said Dr. Mrinalini Tankha of Portland State University, who has studied Cuba for 10 years.
In 2020, after more than 20 years operating in Cuba and being a particularly important remittance channel in the country, Western Union closed all more than 400 locations in Cuba because of increased sanctions of the Trump administration. for Havana.
When Covid-19 appeared, transferring money in and out of Cuba became more difficult than ever. In such a context, virtual currencies are increasingly used in Cuba, experts say.
Ms. Tankha said that the strong cryptocurrency community in Cuba is due to the increasing popularity of the Internet in the country, along with more and more Cubans owning smartphones and 3G connections.
Not only used as a method of transferring money across borders, virtual currency is also a way for Cubans to generate additional income.
“If you are a software developer or an NFT artist, you can get paid in virtual currency for your work. This opens up a whole new economy for Cubans.”
Havana-based photographer Gabriel Bianchini was one of the first artists in Cuba to enter the world of NFT. “My first work sold after 6 days for 1.6 Ethereum. This is better than making money,” said Bianchini.
However, for virtual currency to be widely adopted in Cuba, the country still has a long way to go. The recent resolution – while a boon for Cubans eager to get into the crypto space – is not an open welcome to cryptocurrencies. The content of the resolution includes risk warnings related to virtual currencies and virtual currency service providers.
Still, experts say that any regulation of cryptocurrencies is a positive step forward.
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Crypto