Government of Cuba Is Considering to Officially Regulate & Recognize Digital Currencies
Amid all the ongoing fare along with the rapid adoption of digital assets the government of Cuba is working on introducing official regulations for the working of cryptocurrencies.
As per the resolution published in the Official Gazette on Thursday, August 26, the central bank of Cuba will set rules for the use of such currencies along with determining the ways to license crypto service providers operating in the country.
Cuba will be probably trying to replicate the move of El Salvador which passed the Bitcoin law earlier this year. Back in May 2021, Cuban President Miguel Díaz Canel was having discussions with lawmakers and authorities on adopting cryptocurrencies.
Like other small countries, the Cuban economy has been hit severely with the COVID-19 pandemic. Thus, amid the financial turbulence, the government is looking to adopt the crypto route like other peers.
Furthermore, some strict embargo rules imposed by the former U.S. President Donald Trump has made it difficult for the Cubans to use the U.S. Dollar. Senior Cuban ministry official, Johana Tabalada said that their estimates suggest that these measures costed the country a massive $20 billion.
Thus, a technologically savvy group working in the country has now decided to start using digital currencies.
Countries like El Salvador and Cuba are now relying on digital currencies as a way of encouraging remittances from the citizens living abroad. Although volatile in nature, cryptocurrencies work independent of any authorities.
The resolutions from the Official Gazette also mentions that the Central Bank of Cuba has the power to authorize cryptocurrencies “for reasons of socioeconomic interest”. However, the central bank along with the government will ensure that the operations are all controlled. Besides, it will also take care of the fact that the crypto transactions doesn’t involve any illicit activities.
Erich García, a local cryptocurrency expert from Cuba said that native have already started using digital assets for making online purchases or via the gift cards.
Cryptocurrencies have gained a widespread adoption worldwide amid the recent bull run. As a result more countries are considering legalizing them in the near term. Countries like El Salvador have been setting Bitcoin ATMs to start exchanging BTC with USD.