Cuba wants to allow the use of Bitcoin in payments

Authorities want crypto-currencies to be used legally, with licensed and vetted providers.

The Cuban government is set to officially recognize Bitcoin and other crypto-currencies, as the island nation seeks to regulate the assets for use in the payments sector, according to a report published by Bloomberg this morning.

Citing the Official Gazette, the report said the country’s government and the Central Bank are looking to work together to achieve this goal.

The bank is expected to formulate the official framework within which crypto-currencies will be used, including the licensing of crypto-currency providers seeking to offer finance-related services in the country.

Cuba’s economy is one of many in the Caribbean region to suffer from the extensive U.S. sanctions, and the country’s population is increasingly turning to Bitcoin and other crypto-currencies to escape the effects of the restrictions.

While crypto-currencies are not as popular as they are in Venezuela or other Latin American countries, their use is growing among the younger generation. Authorities in the country are also encouraged by the growing recognition of crypto-currency across the region, especially since El Salvador became the first country in the world to enshrine Bitcoin in law as a legal tender.

The Bloomberg report cites the potential of crypto-currencies to offer an anonymous, cheaper and faster way to send money across borders as one of the reasons many Cubans are turning to BTC and altcoins.

But even as Cuban authorities seek to recognize crypto-currencies, they aim to closely monitor the sector. In line with the government’s resolution, the authorities are moving towards officially allowing the use of crypto-currencies for reasons of “socio-economic interest.”

In this case, the state will monitor the sector more closely, with the aim of preventing the use of crypto-currencies in illicit activities such as money laundering and fraud.