Cuba is aiming to become the first country in North America to officially recognize and regulate cryptocurrencies. As per a recent resolution published in the Official Gazette, the Central Bank will set up rules for the use of digital assets.
Besides, it will also be working on licensing crypto service providers operating on the North American island. The strict embargo rules imposed by former U.S. President Donald Trump have made it difficult for the Cubans to use the U.S. Dollar.
Thus, a technologically savvy group in Cuba is looking at digital assets which can help them break these financial barriers.
Taking Up the El Salvador Route
Earlier this year in May 2021, the Latin American nation El Salvador made Bitcoin (BTC) a legal tender in the country along with the USD. El Salvador’s Bitcoin law is all set to go into practice next month and the preparations for the same are already in the full swing.
With crypto-assets being completely decentralized, there are no particular organizations looking after the flow of money. Thus, at a time when the U.S. is putting up restrictions to send cross-border payments to Cuba, cryptocurrencies have become a great alternative for its residents.
The resolution from the Official Gazette mentions that the Central Bank has the power to authorize digital assets “for reasons of socioeconomic interest”. However, the state will ensure that the operations are controlled. The state will also look after the fact that these crypto transfer operations do not involve any illicit activities.
Erich Garcia, a local cryptocurrency expert from Cuba said that the natives are already using digital assets through gift cards for making online purchases.
Small Countries in North and Latin America have been keen on exploring digital assets to combat the economic uncertainties arising out of the COVID-19 pandemic. Besides, some local banks in theU.S. are also exploring this option.
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