Cuba’s Government Looking to Recognize Bitcoin and Crypto for Payments: Report

Cuba's Government Looking to Recognize Bitcoin and Crypto for Payments: Report

After El Salvador made history earlier this year by accepting bitcoin as a legal tender, the number of countries planning to mimic the move continues to grow. A recent report showed that Cuba’s Central Bank wants to implement rules enabling the nation to utilize digital assets legally.

CryptoPotato reported in May this year when Cuba’s President – Miguel Díaz Canel – working with other authorities in the country reviewed possible ways how to adopt cryptocurrencies to overcome the financial turbulence, which intensified after the COVID-19.
Earlier on August 27th, Bloomberg cited the local Official Gazette informing that the nation is indeed planning to step into the digital asset space.
The report indicated that Cuba’s government, together with the Central Bank, wants to recognize and regulate cryptocurrencies for payments.
The central banking authority will implement the rules and determine how to license providers of such services that can operate within the island.
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.

“The damage to the bilateral relationship during this time has been considerable, and the economic harm to Cuba immense. We estimate it at about $20 billion.” – Talabata commented.

Consequently, the decentralized nature of bitcoin and some cryptocurrencies could provide a viable alternative for Cuba.
Nevertheless, the state wants to make sure that the digital asset operations are controlled to an extent and to use them for “reasons of socio-economic interest.”
It’s worth noting that El Salvador was the first nation to accept BTC as a legal tender. Its law comes into effect in less than two weeks.

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