We have already reported that cryptocurrencies may soon become a legal tender in Cuba. There is now another reason to rejoice. On Thursday, the Cuban Central Bank declared that it will recognize and regulate virtual assets. The decision will go into effect on September 15. However, the central bank insists that cryptocurrencies are used for socioeconomic purposes and not for illegal transactions.
How the Cuban central bank defines virtual assets
The government said it will recognize the use of virtual assets. Where do cryptocurrencies come into play? We go into more detail about the Cuban Central Bank’s statement.
It says that virtual assets will be the digital representation of assets. They can be traded and transferred digitally for payments or investments. This definition perfectly covers cryptocurrencies and any other tokens that companies may use digitally in the future.
However, government entities are not allowed to use virtual assets for transactions unless specifically authorized by the Cuban Central Bank.
What it means for Cuba and the world of cryptocurrencies
Bitcoin is already very popular in Cuba and is used by many people. The cryptocurrency is widely accepted when conducting online transactions.
Besides Bitcoin, other cryptocurrencies are also quickly following suit. In Cuba, there is a large tech-savvy group that is driving this development.
Why is cryptocurrency growing so fast in Cuba? The main reason is that it is becoming increasingly difficult to use dollars, partly due to the strict rules put in place by former US President Donald Trump.
Therefore, this move will make it easy for people in Cuba to conduct transactions and go about their regular business. It is also good news for the crypto world as more and more countries are adopting cryptocurrencies as a way to transact.
For example, El Salvador will soon officially recognize Bitcoin. The country’s president announced that Bitcoin will be accepted as a legal currency starting September 7. This will make El Salvador the first country in the world to officially recognize Bitcoin as legal tender.
Other countries such as the US, Canada, Australia and Finland are generally crypto-friendly. The UK has already enacted some crypto tax laws. However, there are still regulatory issues in all these countries. As a result, government acceptance of cryptocurrencies is not yet on par with what we see in El Salvador or Cuba.
Cuba is now joining the movement as one of the countries pushing cryptocurrencies towards widespread national adoption.
There are still concerns about volatility and possible illegal activity. However, crypto enthusiasts are optimistic about the moves of Cuba and El Salvador. What happens in these two countries could quickly be emulated in others.