Authorities want cryptocurrencies used legally, through licensed and supervised providers
The Cuban government will formally recognize Bitcoin and other cryptocurrencies and aims to regulate their use within the payments sector, according to a Bloomberg report published this morning.
Referring to the Official Gazette, the report states that the government and the central bank plan to work together to achieve this goal.
The central bank is expected to develop the official framework that will govern how cryptocurrencies are used, including licensing requirements for crypto service providers that offer financial services in the country.
Cuba’s economy is one of several in the Caribbean affected by heavy U.S. sanctions, and an increasing number of residents are turning to Bitcoin and other digital currencies to mitigate the impact of these restrictions.
While crypto adoption in Cuba is not as widespread as in Venezuela or some other Latin American countries, use of digital assets has been growing among younger people. Cuban authorities are also encouraged by rising recognition of cryptocurrencies across the region, particularly after El Salvador became the first country to adopt Bitcoin as legal tender.
The Bloomberg article highlights cryptocurrencies’ potential to provide an anonymous, lower-cost and faster way to send money across borders—factors that have driven many Cubans to seek out Bitcoin and altcoins.
Despite moves to acknowledge crypto, Cuban officials emphasize careful oversight of the sector. According to the government resolution, cryptocurrencies will be permitted for “socioeconomic reasons,” but the state will impose stricter controls to prevent illicit activities such as money laundering and fraud.