As the island of Cuba becomes more open to cryptocurrency transactions, the Cuban government has announced plans to establish laws to legitimize these transactions.
The Cuban government has revealed its plans for cryptocurrencies.
By publishing a resolution in the Gazette, the official government publication, the Central Bank announced its intentions to supervise the restrictions of cryptocurrency trading. For this purpose, the bank would also establish a program to register and license cryptocurrency service providers in the country, which would be funded by the government.
Additionally, the central bank declared that it will permit cryptocurrency payments only to promote economic and social advantages in the future. The state, on the other hand, would monitor all crypto activities to ensure that they are maintained under control and out of the hands of individuals engaged in illegal activity.
Is there a future for Cuba in El Salvador?
With the recognition of Bitcoin as legal tender in El Salvador, it looks that Cuba is on its way to following in its footsteps. Due to a Trump administration embargo on cryptocurrency transactions, the demand for cryptocurrency payments in South American countries has increased. Even though these countries are subject to severe trade embargoes, these currencies are assisting their residents in avoiding them. It is quite popular for people in the United States to send money to Cuba using cryptocurrency.
Cuban Bitcoin (also known as Cuban Bitcoin)
Bitcoin is becoming increasingly popular in Cuba as a form of payment. By November 2019, it is possible that almost 7,000 Cuban cryptocurrency investors would trade on the cryptocurrency exchange managed by Cuban refugee Claudia Rodriguez in Brazil. Erich Garcia, a Cuban YouTuber, and crypto-specialist has also tackled the subject in several videos posted on his YouTube channel. Since they are unable to use Visa or Mastercard owing to the embargo, many Cubans have resorted to gift cards for internet purchases, according to him.
According to a report published last year by the communist-controlled country’s television channel, the government intends to utilize cryptocurrencies to increase wages and help in market reforms. Cryptography is used by around 50,000 Cubans out of a total population of 11.3 million people, according to official statistics. This represents a minuscule percentage of the total number of Bitcoin users.