Home Regulations Will CUBA Fight Persecution, Suffocation, and Immobilization With Cryptocurrency Recognition?

Will CUBA Fight Persecution, Suffocation, and Immobilization With Cryptocurrency Recognition?

Cryptocurrency Cuba

For reasons related to socioeconomic interest, CUBA will recognize and regulate cryptocurrencies like Bitcoin.

Resolution 215 from the Official Gazette has stated that the Central Bank will set new rules to deal with digital currencies. Thus, those who provide cryptocurrency-related commercial services will need a license from the Central Bank.

The CUBA’s Central Bank have warned their citizens that individuals who take unauthorized operations with such assets at their own risk. During May 2021, the Central Bank also warned them about the uprising of Ponzi-like investment schemes, including some cryptocurrencies.

Cubans like the idea of cryptocurrency as a way to get around the several decades-old U.S. trade embargo. Cubans have been suffering the inability to make use of conventional international payment systems and financial markets.

Thus, CUBA will be joining El Salvador in supporting digital cash.  They are doing this in an attempt to circumvent the U.S. sanction regime.

CUBA has been subject to persecution, suffocation, and immobilization, with CUBA ultimately forcing its people to renounce the decision to be sovereign and independent. The U.S., by its embargo, is looking to close the nation from the outside world, eventually having the country surrender by force or starvation. Cubans have been long being forced into extremely hard living conditions.

CNBC pointed to how sending and receiving money between the “U.S. and Cuba” was extremely difficult under the Trump administration.

Further, during 2020, Western Union, which is a particularly significant channel for remittances operating in Cuba for more than 20 years, has shuttered down nearly 400-plus locations due to the increasingly aggressive Trump-era sanctions.

The economic impact of U.S. Sanctions on Cuba has been huge. The U.S. economic sanctions with respect to Cuba have been around since 1960. The economic collapse and the breakup of the Soviet Union terminated the Soviet Economic assistance for Cuba, which eventually made the Cuban government to change its economic policies in 1990. The impact was different during different time periods, from 1960 to 1989 and then from 1990 to 1996.

Further, following the Covid outbreak getting money in to and out of the country was further complicated.

There were semi-formal courier services like the mulas, which were agencies who carried cash to Cuba and distributed it to them. Flight services were stopped during the pandemic, and this became impossible. There has been a desperate need for cash, and eventually, there is a rise in crypto adoption in Cuba.

 

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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