According to recent statements, Cuba wants to accept Bitcoin as a form of payment. In addition to this, Cuba wants to recognize and regulate cryptocurrencies.
Following El Salvador‘s adoption of Bitcoin as its legal currency earlier this year, the number of countries that are supportive of crypto continues to grow. According to a recent report, the Central Bank of Cuba is developing new rules and regulations that will allow it to use digital assets legally.
Cuban President Miguel Díaz Canel stated that he is working with other officials in Cuba to consider how to use cryptocurrencies to overcome the country’s financial problems following COVID-19.
According to Bloomberg, Cuba plans to enter the digital asset space and publish it in the Official Gazette. The Cuban government wants to recognize and regulate cryptocurrencies for payments in conjunction with the Central Bank. The central bank will enforce the rules and decide how to grant licenses to providers of such services who may operate within the island.
The Cuban economy has been in disarray for years, but it would be fair to say that the sanctions imposed by former US President Trump have exacerbated the situation. According to Johana Tablada, a senior official in the Cuban Ministry, the sanctions cost approximately $20 billion. Johana Tablada made the following statements on the subject:
The damage to the bilateral relationship during this time has been considerable, and the economic harm to Cuba immense. We estimate it at about $20 billion.
As a result, the decentralized nature of Bitcoin and other cryptocurrencies may provide a viable alternative for the Cuban economy. However, Cuba wants to ensure its digital asset operations are controlled to some extent and use them for socioeconomic interests.