- Cuba has established rules for the use of digital currencies, including licenses for payment service providers and cryptocurrency exchanges.
- A resolution on Thursday stated that crypto transactions can only be conducted between financial institutions and institutions permitted by law.
- It said that the Central Bank of Cuba can authorize the use of cryptocurrency in the country’s “social and economic benefits”.
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The Cuban government will recognize and regulate the use of cryptocurrency in commercial transactions, including providing licenses to payment providers and crypto exchanges.
According to a statement, the country’s central bank will develop these rules for digital assets. Resolution Published in the Cuban Official Gazette on Thursday. It will also be responsible for determining who should obtain a license, guided by Cuba’s “social and economic interests”.
According to the translation of Spanish documents, cryptocurrency is “a digital representation of the value that can be traded or transferred digitally and used for payment or investment.”
The license of the virtual currency service provider will cover the encrypted exchange of digital assets and fiat currencies. Companies that provide encrypted custody and management or transmission services also fall under this measure.
This move opens the door for companies and individuals who wish to use digital assets in Cuba within the official regulatory framework. Cryptocurrencies enjoy a reputation for being free from state supervision, which makes their owners difficult to track—some believe that this makes them popular with people trying to circumvent U.S. restrictions on remittances to Cuba.
The resolution stated that once authorized, financial institutions and other institutions will be able to use cryptocurrency for currency and business operations and fulfill financial obligations. But it pointed out that the administrative agencies of the Cuban government should avoid such activities.
The resolution warned those involved in crypto transactions that they would bear operational risks outside the traditional banking and financial system, “although virtual asset transactions between these people are not prohibited.”
The resolution stated that because the central bank is conducting cryptocurrency management, this means that financial stability is at risk, as general decentralization can lead to high volatility. In addition, it pointed out that the anonymity of users on the registered network also brings risks to financial crimes.
El Salvador, a Central American country, passed an effective law in June and became the first country to recognize Bitcoin as legal tender. September 7.
Diane Dai, the co-founder of DODO, a decentralized trading platform, said of the major move of cryptocurrency into the mainstream: “We may not have reached the moment when everyone uses them every day, just like using fiat The currency is the same.”
“But we are in an era where people from all over the world and almost every country have realized and participated in the concept of cryptocurrency. Moreover, in some countries, the use of cryptocurrency is more advanced than North America and other Western economies. many.
