Cuba is planning on regulating digital currencies and paving the way for their integration into the country’s payment system. The North American country has confirmed that the central bank will set the rules for the industry and issue licenses to virtual asset service providers. The Cuban government published ‘Resolution 215’ recently in the state-run Gaceta Oficial. The resolution reveals that the Central Bank of Cuba recognizes digital currencies and will pass new laws to police the industry.
The new resolution will require all digital currency service providers to acquire licensing.
The new resolution will also require all digital currency service providers to acquire licensing, which it shall issue itself. Resolution 215 states that Cuba can authorize the use of digital currencies for reasons of socio-economic interest. However, the state will ensure that all digital currency activities are controlled. These activities must also not involve illegal elements. Cuba partly follows in the steps of another Latin American nation, El Salvador, which recently made bitcoin an optional legal tender. However, it hasn’t been all smooth-sailing for the latter, as President Nayib Bukele thought when he announced the move.
Cubans already use cryptocurrencies for cross-border payments.
Cuba’s central bank will be hoping that its integration will be much smoother. And according to local experts, the country needs cryptocurrencies. Cuba has been facing Trump-era sanctions that have curbed the supply of the U.S dollar to the island nation. When Joe Biden took over as U.S. president, many thought he’d ease up on these restrictions. However, he has only added to them, and now Cuba is starved for U.S. dollars. In addition, many other nations that previously traded with Cuba are pulling out, further damaging an already bad situation.