Cuba Has Approved Crypto Services Subject to Bank Licensing

Cuba avoids sanctions

Following the arrival of mobile internet three years ago, the Cuban government this year legalized the personal use of cryptocurrencies for payment. Enthusiasts think that the digital currencies, which operate independently of any centralized body, will assist them in overcoming the barriers posed by US sanctions.

Citizens of the Communist country struggle to obtain credit or debit cards for foreign use because to the decades-long trade blockade imposed by the United States.

“If the central bank is developing a cryptocurrency-friendly legal framework, it is because they have already determined that it may benefit the country,” said Pavel Vidal, a former Cuban central bank economist.

He believes the government is seeking to make it easier for remittances and multinational foreign commerce operations to enter the country. “This can lower the cost of these international transactions and create an alternative to activities in dollars that are less vulnerable to the sanctions regime,” he explained.

The situation in El Salvador

Vidal also expressed reservations about Cuba following in the footsteps of regional neighbor El Salvador, which adopted Bitcoin as legal cash last year. Last month, the Central American government issued bitcoin bonds amid mixed market sentiment.