Following the forward-thinking decision made by President Nayib Bukele of El Salvador to legalize the use of bitcoin in the country, several other countries have become increasingly interested in legalizing crypto.
The Caribbean nation of Cuba is currently the latest country to indicate interest in crypto, with its authorities reportedly planning to recognize and regulate the use of crypto for payments.
According to a recent report, the Cuban government and central bank are making plans to establish rules for legalizing crypto transactions, along with providing crypto businesses in the country with the necessary licenses based on the services they render.
U.S. Sanctions Drive Crypto Adoption in Cuba
The Caribbean nation’s economy has been suffering for a couple of years. However, the situation became worse when the administration of the former U.S. President, Donald Trump, toughened its embargo rules against Cuba.
It became very difficult to send and use the US dollar in Cuba, resulting in the loss of huge sums of money for the country, a whopping $20 billion loss.
As an alternative, the country is looking at the decentralized nature of cryptocurrencies which allows them to be sent and received from any part of the world, without any central bank interference.
However, Cuba is not blindly jumping into the crypto space. Because of the extremely volatile nature of crypto and its tendency to be used for criminal activities, the Cuban government is planning to take necessary measures to ensure that its operations are regulated.
The country’s central bank noted that the use of crypto in Cuba will be legalized for “reasons of socio-economic interest.”
A Welcome Development
This new resolution by the Cuban government was met with approval from the “tech-savvy” population of the country who are already using crypto to bypass the U.S. sanction.
Some Cuban residents have reportedly been using crypto gift cards to make purchases online, so the decision to legalize the use of crypto in the country was well received.
In June, El Salvador became the first country to adopt bitcoin as a legal tender, setting the stage for a global adoption of crypto.
Although the decision was met with skepticism from some bitcoin critics, the country’s stand has moved several other countries, including Cuba, to look into legalizing crypto.
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