The Communist government in Cuba is looking forward to the legalization of cryptocurrency transactions as a payment tool, Bloomberg reports. The country’s central bank stated that it will create a legal framework that will allow them to establish the legal use of digital currencies as a commercial transaction tool.
The central bank will also issue licenses for companies that work or operate with digital currencies. The people of Cuba have already been using popular cryptocurrencies like Bitcoin, Ethereum and Tether to make personal transactions that allow them to evade state controls.
In countries with intensive state control over transactions, cryptocurrencies have become a popular tool among citizens who are unwilling to declare every payment they make. Usually, central banks and governments tie cryptocurrency transactions to illegal activities like money laundering and drug dealing. Cuba’s bank has also declared that digital currencies are linked to additional risks for its users, like a fraud. In order to prevent illegal activities, the bank looks forward to regulating the industry.
The use of crypto has grown massively in countries like Venezuela and Argentina. In addition, El Salvador will adopt Bitcoin as legal tender alongside the dollar in the next month. The rapid growth of digital assets in countries is tied to the decentralized nature of the networks and their low costs compared to traditional remittance fees.
Mushumir Butt
Tomiwabold Olajide
