Cuba set to recognize and regulate cryptocurrency

August 27, 2021

The Cuban government is reportedly planning to recognize and regulate cryptocurrencies for payments.

According to Aljazeera, the Caribbean nation’s central bank will establish rules for mainstreaming cryptocurrency transactions. Cuban authorities are also expected to distribute relevant licenses to businesses based on the crypto-related services they provide.

Some sources claim that the move to allow cryptocurrency as a legal tender has been well received by Cuba’s tech-savvy population as the country had to temporarily stop accepting cash bank deposits in United States dollars, given tighter restrictions set by former U.S. President Donald Trump.

Struggling economies, such as El Salvador, have also started mainstreaming Bitcoin (BTC) adoption. On Monday, Salvadoran President Nayib Bukele announced the construction of country-wide infrastructure to support the adoption of Bitcoin.

Related: El Salvador’s Bitcoin adoption may transform remittances in Central America

El Salvador’s Bitcoin adoption policy can reduce overall remittance costs and potentially transform the remittance landscape across Central America, according to the Central American Bank for Economic Integration (CABEI).

Dante Mossi, executive president of CABEI, believes that El Salvador’s “out of this world experiment” could result in greater financial inclusion, and thus, it is in CABEI’s best interest to help El Salvador create a technical framework for Bitcoin adoption.