Cuba’s government announced on Thursday that it will recognize and regulate cryptocurrencies for payments on the Island.
- A resolution released in the Official Gazette said the Central Bank will set rules for such currencies and determine how to license providers of related services within Cuba.
- The popularity of such currencies has grown among a technologically savvy group in Cuba as it has become challenging to use dollars, partly because of stricter embargo rules imposed under former President Trump.
- El Salvador recently announced it would legally recognize the use of the cryptocurrency Bitcoin as a way to encourage remittances from its citizens living abroad.
- The highly volatile currencies are usually independent of any central bank and use widely distributed blockchain computer codes to track transfers.
The resolution states that the Central Bank can authorize the use of cryptocurrencies “for reasons of socioeconomic interest” but with the state ensuring that their operations are controlled. The operations could not involve illegal activities.
BTC USD up +1.36%
Source: Bloomberg