Cuba brings crypto regulations, makes crypto a legal payment method

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Sep 17, 2021
  • Cuba made a historical move by legalizing crypto payments with the new Resolution 215 of 2021.
  • With the Resolution, the country regulated and recognized Bitcoin and the altcoins, making payments legal.
  • The country’s central bank still warned users of the risks, including volatility, bad actors, and more.

It has been only a little more than a week since El Salvador started recognizing Bitcoin as legal tender, and already, other countries are considering doing the same. Cuba actually became the next one to start accepting cryptocurrencies as a legal payment method as its new regulations took effect.

The country’s central bank, known as Banco Central de Cuba (BCC) recently issued Resolution 215 of 2021. The resolution recognized digital currencies like Bitcoin, thus allowing their use in the country.

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According to the local reports, the order became official two days ago, on Wednesday, September 15th. Through it, the country’s central bank officially recognized cryptocurrencies — Bitcoin and altcoins alike — which can now be used for commercial transactions and investments within the country.

The country’s central bank originally announced its decision to regulate and recognize digital currencies less than a month ago, in late August. Since then, it worked rather quickly to create Resolution 215 of 2021, which contains provisions for a licensing regime for digital currency exchanges, as well as other virtual asset providers who operate on the country’s territory.

Cuban central bank pointed out the risks as well as the benefits

Of course, the crypto industry still comes with its risks, which the central bank was very transparent about. It noted that, while digital currencies operate outside of Cuba’s banking system, their use comes with significant monetary policy risks, as well as concerns in regard to financial stability.

On top of that, the bank also warned the people of bad actors who are constantly seeking to take advantage of unsuspecting investors, as well as the anonymous nature of the crypto industry, which could lead to illicit transactions.

But, there are clear benefits to adopting crypto, as well, such as easier, faster, and cheaper remittance flows from foreign countries, such as the US. Cuba has had a significant issue with remittances, given that money transfer services like Western Union have abandoned it a long time ago due to growing pressure from Washington.

Cryptocurrencies seemed like a logical alternative, especially since the interest in the country has been growing rapidly over the past several years. The people have gotten the taste of the financial freedom that crypto offers, and ever since, they have wanted more of it. Now, thanks to the new Resolution, they can finally have it.

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