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| Cuba now recognizes cryptocurrencies such as Bitcoin |
Cuba now recognizes and regulates cryptocurrencies such as bitcoin on the basis of social and economic interests.
Resolution 215, published in the Official Gazette, states that the Central Bank will establish new rules for dealing with cryptocurrencies. Commercial service providers are now required to obtain approval from the central bank to continue their operations.
The US embargo on communist countries made Cuba a pariah state in the global economy.
Cuba's decision to introduce decentralized virtual money with El Salvador may help circumvent the US sanctions regime, which was lifted during the presidency of former President Donald Trump and his release under Joe Biden. Joe Biden) during the presidency.
Bank transfers and collections between the United States and Cuba have become very difficult under the leadership of the Trump administration.
In 2020, Western Union, the main money transfer channel that has been operating in Cuba for more than 20 years, closed all of its 400+ sites amid increasingly tough sanctions from Trump.
Due to the coronavirus pandemic, the process of transferring money in and out of the country has become more and more complicated.
Before the outbreak of the Covid virus, some Cubans turned to a semi-official shipping service called Molas, which would bring money to Cuba and distribute it to the islanders.
However, with the pandemic taking ground flights around the world, this way of making money is becoming more and more difficult.
Experts say that this urgent need for cash, against the background of the global pandemic and the global economy, has helped increase the spread of cryptocurrencies in Cuba.
Cuba now recognizes cryptocurrencies such as Bitcoin
The burgeoning crypto community is attributed to the rise of the Cuban Internet. The weakness of the local currency is also a factor that can make Bitcoin more attractive.
Cuba's use of cryptocurrency is not limited to cross-border transfers only. They are also Cubans looking to unleash their income potential.
If you are a software developer or an artist in the NFT, you can get paid for your work with cryptocurrency, which opens up a whole new way for Cubans to participate in the economy.
However, receiving funds, including through crypto channels, requires some creativity as many exchanges are required to comply with KYC.
Cubans face many risks even when using VPNs as they can hide their location. Many exchanges, including those outside the United States, continue to geographically block Cubans.
Thus, the widespread adoption of cryptocurrencies in Cuba still has a long way to go.
The law includes a disclaimer warning citizens of the risks associated with virtual assets and other service providers. What the government says runs on the edge of the banking and financial system.
Regulators around the world are trying to control the cryptocurrency industry. This means that it is a global phenomenon and regulators have recognized that it will continue to exist and that it is worth looking into.