Resolution 215 of 2021 presented by Cuba’s central bank, the Banco Central de Cuba (BCC), which recognizes cryptocurrencies like Bitcoin (BTC), has now gone into effect. As indicated by Cuba’s state news office, Prensa Latina, the law became official this past Wednesday. With cryptocurrency legitimately recognized by the BCC, BTC and other digital forms of money can now be used for business transactions and interests in the country.
The BCC initially reported designs to perceive and control crypto back in late August. Resolution 215 of 2021 contains arrangements for a licensing system for cryptocurrency exchanges and other virtual resource providers in Cuba. However, despite recognizing digital currency in the country, the central bank still cautions about the dangers related to cryptocurrency.
As indicated by the BCC, while cryptocurrency works outside of the country’s financial framework, the utilization of virtual money presents critical monetary policy risks and concerns related to financial stability. Cuba’s national bank additionally cautioned of the potential for agitators to exploit the apparent mysterious nature of crypto exchanges for unlawful exchanges.
By embracing cryptocurrency, Cubans might start to appreciate simpler payment streams from abroad, in spite of US sanctions. Worldwide money transfer platforms like Western Union have, to a great extent, left the country under expanding pressure from Washington. Cuba is towing a comparable line to El Salvador in BTC in the midst of devastating US sanctions and the financial effect of the COVID-19 pandemic. El Salvador recently became the first country to embrace BTC as legal tender, although it hasn’t been without opposition.
Cryptocurrency interest in Cuba has been high throughout the past couple of years, with virtual monetary standards related to the concept of financial freedom for some in the country. The acknowledgment of cryptocurrency by the BCC could be a significant step forward in creating Cuba’s digital currency industry into a formal area of the island country’s struggling economy.