As El Salvador is officially going to adopt Bitcoin as a legal tender, one more from the Latin American countries has determined to carry out cryptocurrencies’ official use. The Cuban authorities have reportedly stated that the government is interested in recognizing and regulating the utilization of digital assets across the country. Today, a proposal got published in the Official Gazette of the country, revealing that the central bank of Cuba will shortly begin the implementation of the rules for using cryptocurrencies. Moreover, it will determine the requirements regarding the licensing of crypto-service providers in the country.
It was reported in May that Miguel Diaz (the president of Cuba) had been reviewing the options for crypto adoption. The prospective move was regarded by a lot of people as a technique to confront economic troubles triggered by the pandemic of COVID-19. Thus, the nation can get a chance to improve its financial status.
It has been for some years that relatively frequent use of cryptocurrency has prevailed in the country. The key benefit of using cryptocurrencies is that the restrictions imposed by the United States can be handled by generating adequate revenue through this, and the citizens will be allowed to participate in the international financial markets as well as to utilize the USD that has been sanctioned as prohibited for Cuba. An estimate figures out that Bitcoin is used by approximately 100,000 Cubans as similar to that of Dogecoin and Ether for online payments, protest donations, and remittance payments.
As Cubans are not capable of accessing international credit and debit cards, the difficult thing is to get payments from other countries. In this respect, cryptocurrencies’ decentralized nature and provision of convenient long-distance payments offer a feasible substitute for the country to minimize its economic hurdles.
The deficiency of regulations remained a point of focus for several people who were afraid of an adverse output on behalf of the authorities of the country. Nonetheless, it is probable for the central bank to authorize crypto use due to the socio-economic interest till the government feels the operations to be controlled. Furthermore, the publication noted that the illegal use of crypto is restricted.
The experimentation of crypto is also being carried out by other countries such as Venezuela and Iran to evade the prohibitions imposed by the United States.