Cuban Central Bank Acknowledges Cryptocurrencies

The Central bank in Cuba has acknowledged the use of cryptocurrencies. Experts believe this move could help the Communist-run Caribbean Island bypass U.S. sanctions.

Cryptocurrencies, which allow financial transactions to be carried out anonymously in a decentralized manner, have been used to get around sanctions and make payments and transfers more efficient.

However, organizations and individuals in Cuba who want to use cryptocurrencies still must obtain a license from the country’s central bank.

The bank declared that it would consider any request’s legality, socioeconomic interest, and project characteristics before granting the authority (license) to use cryptocurrencies, which would be valid for one year.

Three years ago, after the roll-out of mobile internet, Cuba saw massive growth in various sectors, and cryptocurrency transactions are one of them.

In addition, the decades-old U.S. trade embargo removed Cubans from conventional overseas payment systems and international financial markets. Moreover, Cubans cannot obtain debit or credit cards for international use on the island and struggle to do so abroad.

Lastly, several of Cuba’s Latin American neighbors have also been interested in cryptocurrencies, including El Salvador – the first country globally that adopted Bitcoin (BTC) as legal tender.

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