Cuba’s central bank to authorize and regulate cryptocurrency payments

Cuba authorizes cryptocurrency payments and announces upcoming regulation

The American continent is decidedly the most conducive to the adoption of Bitcoin (BTC) and other digital assets. If El Salvador is, to date, the only one to have made BTC a legal tender, Cuba is the last country in a long list to make arrangements in favor of cryptocurrencies.

This Thursday, August 26, the Cuban government announced that it wanted to authorize payments in cryptocurrencies. In a country where information is not always easy to obtain, the source is official and comes from resolution 215 of the Official Gazette of Cuba.

The entry into force of resolution 215 is scheduled for September 15. Cubans will then be able to use β€œcertain” crypto-assets for commercial transactions and obtain licenses authorizing operations related to trading, payment or storage activities.

In summary, in order to be able to offer the purchase and storage of digital assets on Cuban territory, it will be necessary to obtain an authorization license. Moreover, the certain pronoun does not specify whether the government will choose one cryptocurrency over another or, rather, whether it is an editorial blunder.

πŸ‘‰ On the same subject – Ukraine: a bill to authorize payments in cryptocurrency

After authorization of cryptocurrency payments, Cuba wants regulation

Resolution 215 is not just about cryptocurrency payments. Indeed, it is expected that the central bank of Cuba will regulate the use of digital assets on the island. Already mentioned above, the obligation to obtain a license for certain services is an outline of this next regulation.

Not really surprisingly, the resolution also states that the use of crypto-assets cannot involve illegal activity. The contours of the future regulation remain unclear, but one can think that it will simply be a question of limiting payments to certain sectors.

The government understood that the use of BTC was becoming more and more important in Cuba. Moreover, the resolution clearly mentions that this authorization of cryptocurrency payments is taken for simple socio-economic reasons.

Authorization of cryptocurrency payments as Cuba’s economy suffers

Coming from a still openly Marxist regime, resolution 215 has something to surprise specialists of the island, especially when we know that it is Che Guevara who created the central bank of Cuba. Nevertheless, the Cuban economy has opened up in recent years and the government is showing pragmatism.

Above all, we must not forget the dire economic situation of the island. In question, the Covid-19 pandemic has considerably reduced the number of tourists to the island, one of the main sources of income in Cuba. In addition, the US embargo, which dates from the 1960s and strengthened under the Trump presidency, is increasingly hurting.

While rationing is still in effect in Cuba and the shortages are increasing, unprecedented protests have taken place this summer. The population has less and less confidence in their regime and in the future, and are turning more and more to cryptocurrencies.

In particular, sending money from the United States has become very difficult or very expensive, with the American dollar having become an outcast on the island. Cryptocurrencies have taken over and are helping to improve the living conditions of some families. Tether (USDT) is used in particular to replace the dollar for this type of transaction.

However, if resolution 215 is a good thing, we are still far from a Bitcoin law as in El Salvador. Indeed, she specifies that crypto-assets are risky and that they operate on the fringes of the financial system, a surprising remark for an anti-capitalist government. We will therefore closely monitor the actual application of this resolution in Cuba.

πŸ‘‰ To read – Cubans use cryptocurrencies more and more against the backdrop of protest against the regime

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About the author: Benjamin Allouch

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Lawyer specializing in digital law and personal data. He quickly became interested in bitcoin and blockchain technology, and founded the blog bitcoin-blockchain.fr. He is interested in the emergence of blockchain law and the legal consequences of this technology.
All articles by Benjamin Allouch.

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