The Cuban government has announced that it will recognize and regulate cryptocurrencies for payments, amid a rapid increase in the use of cryptocurrencies in the world and some countries are directed to enact laws to regulate the market.
A decision published in the Official Gazette said the Cuban Central Bank would establish rules for these currencies and determine how relevant service providers would be licensed within Cuba.
This comes as the Central American country of El Salvador is preparing to officially recognize the use of Bitcoin, the world's largest cryptocurrency by market value, as a way to encourage remittances from its citizens who live in abroad when its encryption law goes into effect on September 7th.
According to the US Associated Press, the Cuban decision, which will enter into force on the 15th of next month, will regulate the use of certain virtual assets in commercial transactions, as well as the licensing of these service providers in Operations relating to financing, exchange, collection or payment activities in Cuba.
The agency noted that such currencies have become increasingly popular among tech investment groups in Cuba after the dollar has become difficult to use, partly due to tighter embargo rules. imposed under former US President Donald Trump.
About 10,000 Cubans use bitcoin, making it one of the most widely used cryptocurrencies in the country, according to unofficial estimates.
In May, Cuban President Miguel Diaz-Canel said his government was studying the appropriateness of using cryptocurrencies in the economic operations of Cuba, whose GDP fell 11% last year. Because of the American ban and the effects of the “Corona” pandemic.
The decision states that the central bank can authorize the use of cryptocurrencies “for reasons of social and economic interests” but with the state guaranteeing that its operations are controlled and should not involve Investment operations on illegal activities.
