Cuba to regulate cryptocurrencies in the country

The Cuban government announced the central bank’s plans to establish regulations legalizing cryptocurrencies in an Official Gazette post titled Resolution 215 published on August 26. The post stated that different businesses and commercial providers that offer crypto-related services will need licenses to operate. Apart from regulating crypto, the resolution also stated that Cuba recognizes the value of different tokens like Bitcoin (BTC).

In the resolution, it’s stated that cryptocurrencies are only authorized by the central bank ‘for reasons of socioeconomic interest’. The Cuban government also assured that the operations will be managed by them. Additionally, they explicitly stated that these said operations should not involve any illegal activities. 

London-based fintech data analyst, Boaz Sobrado, who used to work in Cuba told American-based network Consumer News and Business Channel (CNBC) last August 27 that this new move by Cuba is a historical change for the country. 

‘This is a conservative government still set in traditional Marxist ways. In fact, the communist Cuban central bank was founded by Che Guevara. The fact that they are cautiously regulating shows they are interested in what it can bring them’ said Boaz.

During the administration of former US President Donald Trump, transactions between the US and Cuba were limited and difficult as said by Portland State University professor Mrinalini Tankha to CNBC last August 27. The situation worsened when the pandemic happened, she added. In turn, this prompted local authorities from Cuba to use cryptocurrencies as a means to solve the issue according to many experts not named by CNBC.

Tankha highlights the rising popularity of cryptocurrencies in the local Cuban community which helped improve the internet in the country. Additionally, she mentioned that this plan by Cuba can help people to earn more.

‘If you’re a software developer, or if you’re an NFT artist, you could actually get paid through cryptocurrency for your labour, and I think that’s where the potential actually is. It opens up a whole new economy for Cubans to participate in’, said Tankha.

This announcement was made by the Cuban government following El Salvador’s measures to use BTC as a form of payment for residents who are living abroad.

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