Monday, September 25, 2023

Cuba Becomes First Country to Authorize and Regulate Cryptocurrency for Payments

The Cuban government has announced that it will recognize and regulate the use of cryptocurrencies in commercial transactions. Cuba Government recognize and authorize the use of cryptocurrency for commercial payments in the country According to the Official Gazette.

Cuba’s Central Bank will apply rules and regulations running the use of digital assets, according to a resolution published in Cuba’s Official Gazette on Thursday.

He added that the bank will also create a legal framework for licensing cryptocurrency service providers to ensure that assets are not used for illegal purposes.

“For reasons of socio-economic importance, the Central Bank of Cuba may allow the use of certain virtual assets in commercial transactions and license providers of virtual assets to conduct business related to financial, bartering, and collection or payment activities,” the resolution reads. Central bank.

Cuba Central bank on Cryptocurrency

“Financial institutions and other legal entities are only allowed to use virtual assets between themselves and with individuals to carry out monetary and commercial transactions … as well as to fulfill monetary obligations,” he added.

In legal theory, an individual is an individual human being as opposed to a legal entity, which can be either a private or public organization.

Central banks round the world are reluctant to support cryptocurrencies thanks to their speculative nature, lack useful, and regulatory oversight.

Cryptocurrencies can allow criminal activity and are “against the public interest,” according to a June report by the Bank for International Settlements, the global body of central banks.

The largest cryptocurrency, Bitcoin, hit a record high of nearly $65,000 in April but dropped below $32,000 on May 23, losing more than half its value since the high. That was $48,223.7 per coin on Friday.

The cryptocurrency is showing signs of appreciating again after retreating significantly from record highs in recent months due to fears of repression in China and questions from billionaire Tesla founder Elon Musk about energy consumption in mining operations.

Due to the anonymity of cryptocurrency users, it is possible that they will be used to finance criminal activities, Cuba’s central bank said.

He added that financial institutions and individuals should avoid working with service providers not authorized by the central bank.

The central bank added that the legal framework will aim to prevent the use of cryptocurrencies in illegal activities such as money laundering, terrorism and the proliferation of weapons of mass destruction.

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