Cuban crypto enthusiasts can now breathe a sigh of relief. On Thursday, its Central Bank said it will recognize and regulate virtual assets. The resolution will take effect on September 15th. However, it insists that cryptocurrencies will be used for socioeconomic interests and nothing illegal.
How Cuba’s central bank defines virtual assets
The government said that it will recognize the use of virtual assets. Where do cryptocurrencies come into the picture? Let’s go deeper into the Cuban Central Bank’s statement.
It says that virtual assets will be the digital representation of value. Such can be traded and transferred digitally for payments or investments. This definition perfectly covers cryptocurrencies and any other tokens that firms can digitally use in the future.
However, government agencies are not supposed to use virtual assets to transact, unless explicitly authorized to do so by the Cuban Central Bank.
What this means for Cuba and the cryptocurrency world
Bitcoin is already very popular in Cuba. Many people already use it. Overall, it is widely accepted in carrying out online transactions.
Apart from Bitcoin, other cryptocurrencies are quickly following suit. There’s a huge tech-savvy group in Cuba that’s been pushing this agenda.
Why is crypto growing so fast in Cuba? The main reason is that it is becoming harder to use dollars, partly because of strict rules imposed by former US President Donald Trump.
Therefore, this move will make it easy for people in Cuba to transact and carry out their regular businesses. It is also good news for the crypto world as more countries are adopting crypto fast as a way to make transactions.
For example, El Salvador will soon officially recognize Bitcoin. Its president said that Bitcoin will start being a legal currency on September 7th. This will make El Salvador the first country in the world to officially accept Bitcoin as legal tender.
Other countries like the US, Canada, Australia, and Finland have generally been crypto-friendly. The UK already has some crypto tax laws in place. However, there are still regulatory issues going on in all these countries. As a result, their state acceptance of cryptocurrencies is still not at the level of what we’re seeing in El Salvador or Cuba.
Cuba now joins the movement as one of the countries that are propelling cryptocurrency towards widespread national acceptance.
There are still worries about volatility and potential illegal activities. However, the move by Cuba and El Salvador makes this an optimistic time for crypto enthusiasts. What is happening in these two countries may be quickly replicated in other countries.
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