Cuba recognizes and regulates cryptocurrencies for commercial transactions
Cuba recognizes and regulates cryptocurrencies for commercial transactions By DiarioBitcoin Editor

The resolution was published in Cuba’s Official Gazette and establishes the regulation of cryptocurrencies.

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Much has been said about the importance of using cryptocurrencies on the island of Cuba. In fact, back in May, DiarioBitcoin had told

that Cuban President Miguel Diaz-Canel, along with other government officials, was examining the adoption of cryptocurrencies as a tool to overcome the financial turmoil in the country. This came a few weeks after Cuban authorities began discussing the implementation of digital assets in the economy.

Well now it is a reality and it is in the Official Gazette number 215 of the Central Bank of Cuba, whose summary says that the resolution “establishes the rules from which the Central Bank of Cuba regulates the use of certain virtual assets in commercial transactions, as well as the licensing of virtual asset service providers (cryptoasset, cryptocurrencies and virtual currency) for operations related to financial, exchange and collection or payment activities, in and from the national territory.”

Here you can read the full gazette

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This indicates that, definitely, the Cuban government will recognize and regulate cryptocurrencies for payments on the island.

The resolution says that the Central Bank can authorize the use of cryptocurrencies “for reasons of socioeconomic interest”

but with the state ensuring that their operations are controlled. It also explicitly noted that operations cannot involve illegal activities. It reads:

“The Central Bank of Cuba, for reasons of socioeconomic interest, may authorize the use of certain virtual assets in commercial transactions, and license virtual asset service providers for operations related to financial, exchange and collection or payment activities, in and from the national territory”.

Official supervision

It is worth noting that the resolution, published yesterday, will come into force next September 15.

Cuba is going through one of its worst economic crises, with a Gross Domestic Product, GDP, that plummeted 11% in 2020 due to the tightening of the US embargo and the impact of the COVID-19 pandemic on the island. In addition, adding to the above travel restrictions, sending family remittances is increasingly complicated, so many Cubans appeal to cryptocurrencies to ensure that the money reaches their relatives on the island.

However, not everything is rosy in relation to this crypto opening. The resolution makes clear

or that “financial institutions and other legal entities can only use virtual assets among themselves and with natural persons, to carry out monetary-mercantile operations, and exchange and exchange”, this when authorized by the Central Bank of Cuba.

The BCC warns that operations with these virtual assets involve “risks for monetary policy and financial stability, due to the high volatility that characterizes them and take place in data networks in cyberspace, usually decentralized, without issuance control, regulation” and “official supervision”.

As for transactions between natural persons it makes clear:

“Natural persons assume the risks and liabilities that in the civil and criminal order derive from operating with virtual assets and virtual asset service providers that operate outside the Banking and Financial System, even though transactions with virtual assets between such persons are not prohibited.”

Sources: Cuban Official Gazette, France24, Bloomberg, Cryptopotato

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