According to the news of the official news agency of Cuba, Prensa Latina, the Central Bank of Cuba enacted the Cryptocurrency Decision No. 215, which is the legal infrastructure for the official use of “virtual currencies” in legal commercial transactions in Cuba, on September 16, 2021. Moreover, the Central Bank also stated that for cryptocurrencies to circulate and use in the country, they must obtain a license from the government.
The Central Bank also emphasized the volatile nature of cryptocurrencies in its decision. He stated that due to the volatile nature of cryptocurrencies, money management policy may be vulnerable and there are inevitable risks of financial instability. The Central Bank also emphasized the security risks that may arise due to the absolute anonymity of cryptocurrencies, noting that cryptocurrencies also have a risk of financing criminal activities.
“The fact that these virtual assets and providers operate outside the bank and financial system still poses some risks to the monetary policy management and financial stability of the country’s government. At the same time, given the anonymity of these virtual asset users, there are risks that these virtual assets could be used to finance criminal activities.”
Cuba Plans to Use Digital Assets Instead of Dollars
According to the Official Gazette, a decision was made by the Cuban government towards the end of last month stating that it plans to create laws containing some regulations to officially recognize and use cryptocurrencies. With this decision, the Cuban government wants to be the first country in North America to legally regulate and recognize cryptocurrencies, as well as to allow their use legally. Cuba also wants to license cryptocurrency service providers operating on the North American Island.
With this decision, Cuba took part in various agencies where it plans to overcome the harsh rules applied by the United States more easily. With the official integration of cryptocurrencies into the country, Cuba thinks that they can more easily overcome the difficulties posed by the United States.