Cuba will officially recognize cryptocurrencies and introduce regulations

The government of the Republic of Cuba has decided to recognize and regulate cryptocurrencies on the island. This will make Cuba the first country in North America to officially recognize cryptocurrencies and regulate digital assets.

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Cuba decides to officially

recognize cryptocurrencies On

August 26, a resolution published

in the Official Gazette revealed the details of Cuba’s recognition of cryptocurrencies. According to its contents, the Central Bank will establish rules governing the use of cryptocurrency assets on the island. Additionally, the bank will work to issue licenses to cryptocurrency service providers. More importantly, the Cuban government will ensure that cryptocurrencies are not used for illegal activities.

Bitcoin

and altcoins are becoming increasingly popular in Cuba. This popularity is driven by the difficulty of using the U.S. dollar, due in part to the strict embargo rules imposed during former President Donald Trump’s administration. Since cross-border payments from the U.S. to Cuba are problematic, cryptocurrencies appear to be a way to survive. Sponsored Sponsored

According to local Cuba cryptocurrency expert Erich Garcia, citizens are already making online purchases using gift cards.

The Republic of El Salvador is the first country in history to make bitcoin a legal means of payment. While some critics of cryptocurrencies believe there are many downsides to this decision, some are convinced that the country’s government made the right decision.

Earlier this month, Bank of America reported four positive implications of El Salvador ‘s Bitcoin strategy

. Analysts at the financial institution noted that adopting Bitcoin could open the country to foreign investment involving U.S. companies. Legalizing Bitcoin could also encourage miners to migrate to the country.

El Salvador to implement Bitcoin strategy next month

El Salvador will fully implement its new crypto strategy as early as September 7

. As part of the move, President Nayib Bukele revealed that the country will launch 200 bitcoin ATMs and 50 kiosks. The ATMs and kiosks will help citizens with Bitcoin exchanges. The president announced these developments on August 22.

Furthermore, Bukele mentioned that Salvadorans will be able to convert their BTC into USD for free. Additionally, he said that Bitcoin may eliminate the remittance commission for Cuba. Similarly, Bank of America said that Bitcoin could potentially reduce transaction costs compared to traditional remittance channels. In a recent statement

eniu Bukele explained:

Our city eats $400 million (U.S.) a year from remittance commissions. A Salvadoran abroad will be able to send money immediately to his relatives in El Salvador. You can send #bitcoin (if you want) or you can send dollars if you want.

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