The Cuban government will officially recognize cryptocurrencies for payments on the island, according to a resolution published in the Official Gazette.
The resolution states that the Central Bank of Cuba can now authorize the use of cryptocurrencies “for reasons of socioeconomic interest.”
However, the central bank will introduce a set of rules for the use of the currencies within the country, as well as controlling the licensing of providers of crypto-related services. The resolution also warned that crypto-related operations can’t involve illegal activities.
Cryptocurrencies have been gaining popularity among Cubans in recent months, as it has become harder to use US dollars due to the embargo rules which were tightened under former US President Donald Trump. Because of the embargo, for instance, Cubans have no access to Visa or Mastercard products. Also, Western Union, the world’s largest money transfer service, suspended dollar transfers to Cuba in November of last year.
Earlier this year, El Salvador became the first country in the world to officially embrace cryptocurrencies. In June, the nation’s Congress approved legislation adopting bitcoin as legal tender. The law will come into force in September.
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