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Cuba’s government said on Thursday that cryptocurrencies would be recognised — and regulated — as a form of payment on the island.
Central Bank Regulations
According to a resolution published in the Official Gazette, the Central Bank will create regulations for such currencies. Therefore, determining how to licence suppliers of related services within Cuba.
It has become more challenging to spend dollars. This is why such currencies have risen in favour among a digitally adept population in Cuba. This is in part due to harsher embargo regulations enforced by former President Donald Trump.
The popularity of Decentralised Currencies
El Salvador, a Central American country, recently declared that it would accept Bitcoin to encourage remittances from people residing overseas. As of 11 a.m. IST on August 27, the price of bitcoin in India was Rs. 36.88 lakhs.
The decentralised currencies fluctuate dramatically in value. Therefore, they rely on widely distributed blockchain computer codes to keep track of transactions.
They are popular with those seeking to avoid government laws, such as US bans on transferring money to locations like Cuba, since they may use them for long-distance transactions that are allegedly anonymous.
Use of Cryptocurrencies
According to the decision, the Central Bank might authorise the use of cryptocurrencies “for reasons of socio-economic interest,” but only if the state guarantees that their activities are under regulations. It further stated that no illicit activity might be part of the operations.
According to local bitcoin specialist and programmer Erich Garcia, some Cubans are already utilising such gadgets for internet purchases.