The Bank of Cuba is responsible for handling the whole banking and finance policies of the country. And now we now know that they are issuing a new framework that regulates cryptocurrency and virtual assets for the better. The law of the country will now manage how people and institutions are using it. In fact, if you search Cuba, even Wikipedia will show its currency as Cuban Peso and Bitcoin as of 7th September.
Bank of Cuba on crypto and virtual assets
Cryptocurrency and Digital assets have always created hype in the world of finance. Many countries are trying to adapt to the new blockchain technology, whereas some stands against it. Cuba is one of the countries that made Bitcoin their official currency, which makes it the 2nd country after El Salvador to embrace this new technology.
The Bank of Cuba is behind regulating all of the aspects that surround the country’s monetary policies. Moreover, they are issuing rules on the usage of crypto by individuals and institutes. The fourth article of the law says that only the bank will approve all cryptocurrencies, and the state authorities don’t have anything to do with approving transactions here. At the same time, the traditional banks will also need to prevent their platform from being used as a crypto exchange.
The new Cuban financial framework took place because of the disconnection between virtual assets and other traditional systems. There is also a high chance that the decision could backfire, and it’ll help finance a few criminal activities in the beginning. The anonymity is what endangers the sanctity of the financial department. Although, Erich Garcia Cruz (Cuban Crypto Proponent) tweets about this on his Twitter account, saying that he uses a lot of cryptocurrencies. He also says since he is a citizen of Cuba, he will obviously comply with the country’s laws.
Citizens residing in Cuba were protesting against the government, pointing to the economic degradation of the country. And also, the fact that covid cases are increasing day by day. Seeing the scenarios take the wrong turn, local entrepreneur Thais Liset came up with an idea. The idea is to help address the medical needs of the people and the lack of food in some areas.
And the cryptocurrency initiative is to seek money from Cubans abroad to help the current situation in the country. As Garcia says, crypto is the easiest and fastest way to donate and be kind to the people over there in Cuba, which I personally think is a smart move.
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