Is Cuba next in line with Crypto Legal Tender?

By Palak Malhotra
Published September 18, 2021 Updated September 18, 2021
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Is Cuba next in line with Crypto Legal Tender?

By Palak Malhotra
Published September 18, 2021 Updated September 18, 2021

According to Cuba’s official news agency, Prensa Latina’s reportage, the Cuban Central Bank issued its Cryptocurrency Resolution No. 215 on September 16, which has set off virtual currencies as a legal method of commercial transactions in Cuba, effective immediately. Furthermore, the Bank’s Crypto positive resolution was set forth with the demand that crypto businesses are required to acquire licenses from the government to run operations in the Nation.

Central Bank’s resolution has also highlighted the volatile nature of crypto, making its management vulnerable to the inevitable risks of monetary policy and financial instability. The bank also emphasized the consistent threat of falling into the trap of funding criminal activities, as part of crypto-related risks, in lieu of absolute anonymity.

“Even as these virtual assets and providers operate outside bank and financial system, their management involves risks for monetary policy and financial stability…The resolution also added that such a procedure also implies risks of being used to finance criminal activities, given excessive anonymity of users registered in such networks and transactions derived from their use.”, the Latin newspaper stated while reviewing the resolution.

Cuba plans to use digital assets in place of the Dollar

Towards the end of last month, Cuba saw a resolution, which stated that the Central Bank is planning to set up rules to officially recognize and regulate the use of digital assets in the nation, according to the Official Gazette. Cuba’s objective is to become the first country in North America to incorporate crypto’s regulated use within the nation. Additionally, the country revealed its plans for licensing crypto service providers operating on the North American Island.

This action was alleged in lieu of the enforcement of strict rules by former U.S. President Donald Trump has made it difficult for the Cubans to use the U.S. Dollar, as reported by CoinGape. Henceforth, the country has taken in its own hands to integrate digital assets in routine use, which can help them break these financial barriers.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Palak Malhotra
435 Articles
Journalism & Mass Comm. ‘21 graduate, Palak is a GenZ journalist with background in Lifestyle journalism & PR. At CoinGape, Palak is a junior crypto journalist preparing for Web 3.0

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