The Banco Central de Cuba (BCC) — the country’s central bank — has published Resolution 215 of 2021, which recognizes cryptocurrencies such as Bitcoin (BTC).
The directive was made public on Wednesday, according to Cuba’s official state news agency, Prensa Latina.
Bitcoin and other cryptocurrencies can now be utilized for commercial transactions and investments in Cuba, according to the BCC’s legal recognition of crypto.
The central bank originally declared plans to recognize and regulate cryptocurrency in late August, as Cointelegraph previously reported.
In fact, Cuba’s Resolution 215 of 2021 includes provisions for a licensing scheme for crypto exchanges and other virtual asset service providers.
Despite the fact that crypto-assets are now legal in Cuba, the BCC has issued a warning about the risks associated with them.
While crypto exists outside of the country’s banking system, the BCC claims that its use creates major monetary policy risks and financial stability issues.
Cuba’s central bank also cautioned against negative actors exploiting the supposed anonymity of cryptocurrency transactions for nefarious purposes.
Despite the US embargo, Cubans may be able to receive easier remittances from abroad if crypto is recognized. Under increased pressure from Washington, global money transfer firms such as Western Union have essentially left the nation.
Indeed, in the face of severe US sanctions and the economic impact of the COVID-19 outbreak, the government is following El Salvador’s lead in accepting Bitcoin. El Salvador became the first country to recognize Bitcoin as legal cash recently.
Cryptocurrency has sparked a lot of interest in Cuba in recent years, with virtual currencies being associated with the potential of financial freedom for many Cubans.
The BCC’s certification of cryptocurrencies might be a big step toward making Cuba’s cryptocurrency business a legitimate part of the island’s faltering economy.