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Cuba Approves Cryptocurrency Services, Cuban Central Bank Announces Crypto License

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Apr 29, 2022

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The increasing popularity of crypto in Cuba boosts the crypto adoption but dealing with regulation of the cryptocurrencies as many other countries are striving to do so.

For example, El-Salvador declares Bitcoin as its national currency in the year 2021, meanwhile, the Central African Republic has also adopted Bitcoin as a legal tender in the month of April to improve the country’s frail economy. 

The Central Bank of Cuba forms new directives to operate on Virtual asset service providers in the country. To improve crypto regulations even after the approval of cryptocurrency in Cuba, it is mandatory to get a license from the Central Bank of Cuba. 

The Central Bank’s official gadget published on April 26, 2022, says that any crypto projects to begin the operation have to first apply for a license from the Central Bank of Cuba with the regulator. The license validation covers one year of validity in Cuba.  

Due to United States’ heavy sanctions on Island nations for decades making it difficult to thrive in its financial system, an assumption is made on this move saying Cuba’s crypto adoption might be a way to avoid U.S sanctions.

Cubans have little to no access to the traditional financial markets and payments system. And due to the U.S. trade embargo, they don’t have access to debit or credit cards for international payments.

Internet Impact on Cuba’s Crypto Adoption 

The introduction of mobile internet has made a kickstart to the cross-border transactions alongside Crypto adoption has grown significantly in the Cuban countries. A former economist Of the Cuban Central Bank and currently serving as a professor at Pontificia Universidad Javeriana Cali in Columbia. 

He has opinions about new rules “If a central bank is creating a cryptocurrency-friendly legal framework it is because they have already decided that it can bring benefits to the country.” believing in Cuba’s ability to offer an even better alternative than cryptocurrency as its national currency. 

The Cuban country’s adoption of cryptocurrency and forming a legal framework is going to benefit the country’s economy, and will also reduce the cost of international crypto transactions and generate an alternative for dollar operations in the country.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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