The government of Cuba has recently announced very good news for the members of the crypto community. According to a new article published by Bloomberg, the citizens of Cuba are soon going to be able to trade cryptocurrencies and use them as payment within their country. Considering that another South American nation El Salvador has planned to accept Bitcoin as a legal tender this year, it does not come as a huge surprise.
Many other nations in the region have since gone on to adopt crypto-friendly regulations. As a Caribbean country, this new cryptocurrency development can introduce a whole new user base to the crypto market. In May, the President of Cuba, Miguel Diaz Canel, was reported to be working with the federal authorities in the neighbouring nations to discuss the possibility of a cryptocurrency-based economy in the region.
Ministry of Cuba Claims that Cryptocurrency Regulations are Necessary to Control Economic Damages
Johana Tabalada is a senior member of the ministry of Cuba. She recently told the media that the policy changes implemented by former President Donald Trump caused a lot of damage to the economy. She further explained that these new sanctions that limited the use of the US dollar in Cuba created an estimated loss of $20 billion. According to Tabalada, these new policies have not only damaged the bilateral relationship but also resulted in a greater economic deficit for Cuba.
The report published by Bloomberg’s Cuban official Gazette declares that the government is in the process of making cryptocurrency payments possible. The Central Bank of Cuba is also going to assist the federal authorities. The Central Bank has been charged with the responsibility of coming up with registration and licensing policies for cryptocurrency exchanges and mining projects.
The government of Cuba is planning to pull their country out of the ongoing COVID-19 pandemic restrictions and losses with virtual currencies. However, the first step of the process is to ensure strict regulatory control over this option. Therefore, the government is planning to charter specific policies and sanctions with which the crypto enterprise will be regulated.
In other words, the permission for the introduction of these new cryptocurrency policies is to ensure that they remain under the tab of socio-economic interests. Due to the decentralized nature of altcoins like Bitcoin, they are a good alternative for USD. Meanwhile, El Salvador is going to become the first-ever country in the world that recognized Bitcoin as a legal tender sooner than two weeks.