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The government of Cuba said Thursday that it will recognize and regulate cryptocurrencies for payments in the country.
Cuba to Recognize and Regulate Crypto for Payments
A resolution published in the Official Gazette this week stated that Cuba’s Central Bank will draw up guidelines for cryptocurrencies and determine licensing criteria for crypto service providers.
The island nation has seen a sharp spike in crypto usage since former US President Donald Trump suspended dollar transfers to Cuban accounts in November last year. This situation has been made worse by the pandemic which has wiped out the dollar-based incomes of those working in the tourism industry.
If Cuba moves ahead in this direction, it could follow in the footsteps of El Salvador -- a country that recently adopted Bitcoin as legal tender. Like Cuba, the Central American country is heavily reliant on the dollar, which serves as its primary currency. Also, remittances play a huge role in the Salvadoran economy and the country hopes that turning to crypto will give a much-needed boost to this source of money.
In the latest resolution, Cuba’s Central Bank has signaled that it could authorize crypto use “for reasons of socio-economic interest,” however, it would need the state to assure that virtual currencies are monitored and do not support illegal activities.
Meanwhile, Erich García, one of the top crypto influencers in the country said that people in Cuba were already using digital assets through gift cards for online purchases.
Crypto Donations Aid Anti-Government Protests in Cuba
Speaking of cryptocurrency use in Cuba, last month García, who leads remittance-focused services such as BitRemesas and QvaPay, raised $2,000 in crypto donations to support protests against the Cuban government. He noted that Bitcoin and Tether were the most commonly used currencies by contributors, although QvaPay also accepts Litecoin and Bitcoin Cash among other assets.
Crypto payments platform Slyk also joined García’s initiative and helped gather funds for medicines, masks, food, clothing, and other supplies.
While cryptocurrencies are relatively new for the Cuban population, García estimates that the country’s crypto community is probably as big as 200,000 members