27 October 2021
Resolution 215 of 2021 issued by the Banco Central de Cuba (BCC), the country’s central bank recognizing Cryptocurrencies is now in effect.
As per Cuba's official state news agency Prensa Latina, the order became official starting from 15th September 2021. Now in the island nation, Bitcoin and other Cryptocurrencies will be used for commercial transactions and investments. In addition, Resolution 215 of 2021 contains provisions for a licensing regime for Crypto exchanges and other virtual asset service providers operating in Cuba.
Regardless of legalizing the use of Crypto assets in Cuba, the BCC has warned of the risks associated with Cryptocurrencies. As per BCC, where Crypto operates outside Cuba’s banking system, the use of virtual currencies poses significant monetary policy risks and financial stability concerns.
In addition, BCC has also warned of the potential for bad actors to take advantage of the perceived anonymous nature of Crypto transactions for illegal transactions.
After recognizing Cryptocurrency, Cubans will start easier remittance flows from overseas despite the United States embargo. It looks like or seems like Cuba is following El Salvador in embracing Bitcoin amid crippling U.S. sanctions and the economic impact of the COVID-19 pandemic.
In addition, the recognition of Crypto by the BCC could be a step in transforming Cuba’s cryptocurrency industry as a formal sector of the island nation’s struggling economy.