Cuba prepares to recognize and regulate cryptocurrencies
Cuba aims to become the first country in North America to officially recognize and regulate cryptocurrencies. According to a recent decree published in the Official Gazette, the Central Bank will establish rules for the use of digital assets.
It will also work to license cryptocurrency service providers operating on the island. Strict embargo rules imposed by former U.S. President Donald Trump have made it difficult for Cubans to use the U.S. dollar.
Cuba prepares to recognize and regulate cryptocurrencies
Thus, a tech-savvy group in Cuba is exploring digital assets that can help overcome these financial barriers.
Because crypto-assets are completely decentralized, there are no specific organizations that monitor the flow of money. With the U.S. imposing restrictions on sending cross-border payments to Cuba, cryptocurrencies are becoming a great alternative for its residents.
The Official Gazette ruling mentions that the Central Bank has the right to allow the use of digital assets "for socio-economic reasons. However, the state seeks to ensure control over the transactions and will ensure that cryptocurrency transactions are not linked to illegal activities.
Cuban cryptocurrency expert Erich Garcia noted that natives are already actively using digital assets for online purchases through gift cards.
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