Resolution No. 215 of 2021 issued by the Central Bank of Cuba (BCC)-the country’s central bank-recognizes Bitcoin and other cryptocurrencies (Bitcoin) Is now in effect.
According to Cuba’s official news agency Prensa Latina, the order became Officially on Wednesday.
With BCC legally recognized cryptocurrency, Bitcoin and other cryptocurrencies can now be used for commercial transactions and investments in Cuba.
As Cointelegraph previously reportedAt the end of August, the central bank announced for the first time its plan to recognize and supervise cryptocurrencies.
In fact, Resolution 215 of 2021 contains provisions regarding the licensing system for cryptocurrency exchanges and other virtual asset service providers operating in Cuba.
Despite the legalization of the use of crypto assets in Cuba, BCC has warned of the risks associated with cryptocurrencies.
According to BCC, although encryption operates outside the national banking system, the use of virtual currencies will bring significant monetary policy risks and financial stability issues.
The Central Bank of Cuba also warned that bad actors may use the anonymous nature of encrypted transactions to conduct illegal transactions.
By acknowledging cryptocurrencies, Cubans may begin to enjoy easier overseas remittances despite the embargo imposed by the United States. Under increasing pressure from Washington, global money transfer services such as Western Union have basically withdrawn from the country.
In fact, under the economic impact of severe US sanctions and the COVID-19 pandemic, the country is taking a similar route to El Salvador to embrace Bitcoin. El Salvador recently became the first country to adopt Bitcoin as its legal tender.
Cuba’s interest in cryptocurrencies has always been high In the past few years, the possibilities associated with virtual currencies Financial freedom for many people in the country.
The BCC’s recognition of cryptocurrencies may be an important step in transforming Cuba’s cryptocurrency industry into a formal sector of the island nation’s troubled economy.