Cuba Announces Its Intentions to Define Guidelines for Crypto Regulation

The Central Bank of Cuba (Banco Central de Cuba – BCC) has announced through its official gazette that it will define a set of rules to recognize and regulate Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and the industry itself within the island. The paper also explains that the Cuban government will seek to establish guidelines to grant licenses to crypto-related providers.

“The Central Bank of Cuba, for reasons of socio-economic interest, may authorize the use of certain virtual assets in commercial transactions, and grant a license to virtual asset service providers for operations related to financial, exchange and collection or payment activities, in and from the national territory, in the terms established in Decree-Law No. 362 ‘Of the Institutions of the Banking and Financial System,’ of September 14, 2018, and from there apply to these subjects the provisions of the Decree-Law mentioned above, as appropriate,” the BCC detailed in the gazette.

That said, the central bank noted that the government would oversee and thus control the crypto-related operations to avoid any illicit activity considered under Cuban law. The paper released by the BCC adds: “Financial institutions and other legal entities can only use virtual assets among themselves and with natural persons, to carry out monetary-commercial operations, and for exchange and redemption; as well as to satisfy pecuniary obligations, when authorized by the Central Bank of Cuba, under the provisions of the previous section of this Resolution.”

Cuban Government and Its Interest in Cryptos

The BCC’s announcement does not come as a surprise at all as Miguel Díaz-Canel, the President of Cuba, has been throwing some darts by expressing his interest in cryptocurrencies.

At the end of 2020, a report released by a German media outlet, Deutsche Welle, highlighted that startups in the Island nation were using Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term (BTC), Ethereum (ETH) and other cryptocurrencies to fill the gap created after Western Union closed more than 400 branches in the country amid financial restrictions.