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.