This post was most recently updated on June 9th, 2022
The Cuban government said Thursday that it would recognize and regulate cryptocurrencies, which will make them usable in Cuban banks and other places. To know more about the cryptocurrency marketplace, visit this site on what crypto is in the Cuban government.
Several news sources say that the country’s Central Bank published a resolution in the country’s Official Gazette that says it will make laws about cryptocurrencies and figure out how to license companies that offer services.
Central America is the name of the part of the world where El Salvador is. In June 2021, it will be the first legal government to accept Bitcoin as money. (BTC). El Salvador will be the first country to use Bitcoin (BTC) as its official currency. The country will also be the first to do this.
El Salvador’s president, Nayib Bukele, said that the government plans to install 200 Bitcoin ATMs as part of a larger plan to make Bitcoin the country’s official currency. On Tuesday, the Cuban central bank told businesses that they couldn’t do much with virtual assets.
Right away, these rules were put in place. The country’s central bank said last year that people could use cryptocurrency for their own needs. Some experts think that this will make it less likely that the communist-run island in the Caribbean will start a war with the US.
Cryptocurrencies are digital assets that you can buy things without going through a central bank. In the past, they were used for many different things, such as getting around capital limits and speeding up payments and account transfers.
The “Official Gazette,” the government’s newspaper, said Tuesday that the bank could do this. If you want to use cryptocurrencies, you have to get a license.
Before agreeing to a project, the bank said it would consider if the request was legal, how important the project would be to society and the economy, and what kind of project it would be. The license was suitable for a year when the term started.
When Cuba got mobile internet three years ago, people there could buy and sell bitcoins. More and more people on the island are losing their jobs because of international sanctions from the US and other countries.
Cuba can’t use most international payment systems or financial markets, including the US, because of a US trade ban. This is how things have always been. You can’t get credit cards or debit cards that can be used in other countries on the island, and Cubans who travel often have trouble getting these cards.
An economist who used to work at Cuba’s Central Bank and is now a professor at Colombia’s Pontificia Universidad Javeriana Cali says the country has already decided that cryptocurrency could be good for it.
Several Latin American countries, like Cuba’s neighbor El Salvador, are interested in cryptocurrencies. Since then, bitcoin’s value has kept going up.
Vidal thinks that Cuba won’t use bitcoin or make its currency as El Salvador did. Instead, the government wants to make it easier to send money home and do business with people in other countries.
In January of this year, the Cuban parliament passed a law that says the country’s central bank can let people use cryptocurrency for “socioeconomic reasons.”
The government has said that they won’t be used carelessly or in ways that don’t make sense. Also, the speech made it clear that nothing was against the law.
India will be the second country in the world to use cryptocurrencies in 2021, according to Chainalysis, a company that studies blockchains.
People in economies that are still growing are becoming increasingly interested in cryptocurrencies. Even though the number of people using cryptocurrencies has increased by more than 880% in the last year, this statement is still valid.