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Cuba ready to allow crypto payments for socioeconomic reasons

TL;DR

TL;DR Breakdown:

  • The Cuban government says it will recognize and regulate crypto payments.
  • Crypto adoption has risen significantly in the country following the sanction imposed by the US government. 

The government of the Republic of Cuba is ready to allow and regulate the use of Bitcoin and other cryptocurrencies within the country for payments, according to a Bloomberg report on Friday. 

Cuba to support crypto payments

Due to the embargo rules imposed on the country under former President Donald Trump, most Cubans find it difficult to remit money, especially with the United States dollars. As a result, cryptocurrencies have become very popular amongst Cubans as the go-to option for sending and receiving money freely, owing to their anonymity.

Following the wake of cryptocurrency activities in the country, the central bank noted in a resolution on Thursday, it will recognize and regulate Bitcoin and crypto payments. The bank will establish rules to regulate crypto payments and how to license virtual asset service providers operating within the jurisdiction.

The Cuban government is recognizing the use of cryptocurrencies “for reasons of socioeconomic interest,” according to the resolution. They will also enact security measures to ensure crypto payments in the country are controlled and don’t constitute illegal activities.

US sanctions indirectly support crypto adoption

In November 2020, Cryptopolitan reported how payment giants like Western Union cut ties with Cuban residents, following the sanction imposed on the country by the US government. The embargo indirectly spurred an immense level of interest and adoption of cryptocurrency in the country.

Bitcoin and Ether were two of the most-traded digital currencies in the country, despite these coins weren’t regulated in the country at the time. The rate of adoption and crypto payments in Cuba is likely to surge, given the government is ready to recognize and regulate it.

Crypto adoption has risen significantly across the globe, especially in Latin America, Asia, and African countries. Recently, Cryptopolitan reported that Vietnam currently has the highest global crypto adoption rate, followed by India and Pakistan per Chainalysis.

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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