Ask a crypto enthusiast, and they will tell you that the bear run has officially begun. The relatively new and novel financial tool has become a favorite among investors around the world, many of whom bet that cryptocurrencies are the future of transactions. However, the general population still sees it as more of a store of value than an actual currency. That being said, certain communities are undergoing a revolution, and are looking to implement changes to use cryptos as how they are defined- currencies. Following the footsteps of El Salvador, Cuba is now looking to recognize and regulate cryptocurrencies, according to a resolution published in the Official Gazette.
The Central Bank is looking to set up rules and regulations in a bid to use them as payments on the island.
This will help the island in form of remittances, which will push citizens living abroad to send money back home. Cryptocurrencies have already been becoming quite popular in Cuba, as dollar transactions become more and more difficult due to toughened embargo rules imposed under former President Donald Trump.
A big portion of Cuba’s economy depends on remittances, and thus, cryptocurrencies, which allows for long distance transactions in a matter of minutes, will help the country streamline its financial structure.
However, cryptocurrencies can be wildly unstable, often losing and gaining large amounts of value in a matter of hours. Moreover, there is also a massive debate about the dangers of using cryptocurrencies. Since these coins are not centralized, they can be used to fund crimes, according to some experts.
This is probably why the Central Bank also wants to regulate the currency, as to make its use actually viable in the country.
The bank warns that “persons assume the civil and criminal risks and liabilities derived from operating with virtual assets and service providers that operate outside the banking and financial system, even though transactions with virtual assets between these persons are not prohibited.”
Nonetheless, this is surely a step in the positive direction for cryptocurrencies, as more and more countries opening to the idea of accepting them as legal tender could lead to long term changes in the financial world.