The Cuban government has announced that cryptocurrency payments will be accepted and regulated on the island.
In a report credited to the Associated Press, Cuba’s Central Bank will establish rules on such currencies and determine how licenses will be granted to providers of related services in Cuba, according to an official resolution published in the Official Gazette
During the Trump administration, tougher embargo rules have made it more difficult to use dollars, contributing to the rise in popularity of these digital currencies in Cuba; notably, the telecommunications revolution has boosted their popularity.
El Salvador, a country in Central America, recently announced that remittances from its citizens abroad will be encouraged by the use of the cryptocurrency Bitcoin.
Currency values fluctuate wildly and are usually independent of any single central bank, and they use computer codes distributed widely throughout the blockchain to keep track of transactions.
People taking advantage of them, presumably including U.S. citizens attempting to evade government regulations, use them to conduct long-distance transfers that are supposed to be anonymous.
To be able to use crypto-assets for "socioeconomic reasons," the resolution states that the Central Bank must ensure that their operation is regulated by the government. Operational activities had to be free of illegal activity as well
Some Cubans already use crypto devices, often via gift cards, for online purchases, according to a crypto expert in the country.
Bitcoin became legal tender in El Salvador in January. Despite Cuban leaders not explicitly saying any of its cryptos will be legal tender, the announcement signalled a move to integrate cryptocurrencies into Cuban society and payment needs.
Also, the government has said that crypto-related activities in the country will be controlled by the state and that these operations will not involve illegal activity.