Regarding the announcement made by the Central Bank, the people of Cuba will now be able to officially trade cryptocurrencies and take advantage of the relative services that follow.
Financial development in the region of Cuba has recently taken a boost, as the Central Bank has announced the allowance of the issuance of cryptocurrencies and legalized the use of digital asset services in the region. This week, the Central Bank of Cuba revealed new regulations for all digital asset service issuers in the region, mentioned in the official newsletter from the Cuban Government.
In addition to the approval of crypto services and cryptocurrencies, the announcement made by the Central Bank did say that to ensure its legalization, all respective service providers must register themselves and acquire a proper license by seeking the monetary authority.
The Central Bank also stated that before giving the green signal to any project, the bank will seek information about the legal status, socioeconomic interests, and overall quality features, to determine if the project is eligible for receiving the license or not. Upon successfully receiving the license, it will remain active for a year, before needing to be required. The Bank however did not mention about when this limit would be revised.
As technological advancements developed in the region followed by the launch of mobile-based internet, the government had already started to see cryptocurrencies as a way for evolution in its financial status. The government had already allowed cryptocurrencies to be used on a personal basis around a year ago.
Countering U.S. Sanctions
Many experts believe that the use of digital assets and services will not only uplift the financial sector in the Island, but will also help the government to counter the issues that they have been facing due to multiple troublesome sanctions placed the United States government.
Ex-economist at the Cuban Central Bank, Pavel Vidal commented on the development, stating that the if Central Bank is developing a legal framework in favor of cryptocurrencies, then it means that they see it as a benefit. Additionally, Vidal also said that the government wants to promote international remittances and trading operations, massively reducing the cost involved in them and producing “an alternative to operations in dollars”, which will help the country to counter the sanctions.