Cryptocurrency Is Now a Legal Way to Pay for Commercial Transactions in Cuba

by Eva Fox September 18, 2021

Cryptocurrency Is Now a Legal Way to Pay for Commercial Transactions in Cuba

New cryptocurrency rules go into effect in Cuba. Cryptocurrencies are now a legal way to pay for commercial transactions in the Island nation.

Resolution 215 of 2021 issued by the Banco Central de Cuba (BCC)—the country’s central bank—has recognized cryptocurrencies like Bitcoin as an official means of payment. Since the cryptocurrency is officially recognized by the BCC, Bitcoin and other cryptocurrencies can now be used for commercial transactions and investments in Cuba. The new rules took effect September 15, Cuba's official state news agency Prensa Latina reported.

Resolution 215 of 2021 contains provisions on the licensing regime for crypto exchanges and other virtual asset service providers operating in Cuba. In parallel, BCC also warned of the risks associated with buying, owning, and trading cryptocurrencies.

By recognizing cryptocurrency, Cubans have gained a number of benefits. For example, they may now start getting easier remittance flows from overseas despite the U.S. embargo. This question was difficult for locals as global money transfer services such as Western Union have largely left the country.

El Salvador recently became the first country to accept Bitcoin as legal tender. In early September, the Verkhovna Rada of Ukraine also has supported a bill on the legalization of cryptocurrencies in the country, which will legalize virtual assets and businesses in this area.

Interest in cryptocurrency in Cuba has been high in the past few years, as virtual currencies have provided financial freedom for many of the country's residents. Recognizing cryptocurrency as legal tender could be an important step in transforming the island nation's economy.

© 2021, Eva Fox | Tesmanian. All rights reserved.


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Article edited by @SmokeyShorts, you can follow him on Twitter

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