Cuba Considering Legal Recognition To Cryptocurrency Like Bitcoin

In the ending month of August, 2021, the Cuban government has revealed that it will recognize cryptocurrencies and regulate their use for payments.

The Cuban resolution, which will come into force on September 15 2021, regulates the use of certain virtual assets in commercial transactions, as well as the licensing of providers of these services in "operations related to financial, exchange and collection or payment activities" in or from Cuban territory.

Was Bitcoin Already Used In Cuba?

Bitcoin is one of many tools people use to turn online earnings and payments into in foreign bank accounts, into rent and grocery money in Cuba. Most of the freelancers around the world using bitcoin as borderless money appear to be programmers or other types of technical workers. 

The currencies, which can wildly soar and depreciate in value, are mostly independent of any central bank and use widely distributed blockchain computer codes to keep track of transfers.

Cubans are already using such devices and platforms, often via gift cards, for online purchases based on cryptocurrencies. 

According to unofficial estimates, some 10,000 Cubans use Bitcoins, making it one of the most widely used cryptocurrencies in the country.

Cuba’s economy has suffered for years, but it took another hit when the former US President Trump’s administration implemented new sanctions and crippled the usage of the dollar. A recent estimation by a senior Cuban ministry official, Johana Tabalada, noted that these measures had cost the country around $20 billion.

Last May, President Miguel Díaz-Canel said his government was analyzing the appropriateness of using cryptocurrencies in the economic operations of the country, whose GDP plunged by 11 per cent in 2020 due to the tightening of the US embargo and the impact of the COVID-19 pandemic.


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