Cuba begins using cryptocurrencies in the economy

From May 16, the Central Bank of Cuba will start issuing licenses to legal entities to use cryptocurrencies.

The document states that licenses will be issued to individuals or legal entities for a period of one year. However, it can be extended, but only once.

The Cuban Central Bank said the regulator would consider the legality, social and economic interests and project characteristics of any application before issuing the license.

According to the former Cuban Central Bank economist, Pavel Vidal, the regulator decided to create a fertile ground for cryptocurrencies in the country for profit. This is due to the fact that the Cuban economy has become increasingly weak in recent years: the country’s GDP has fallen by 13% in two years.

At the end of August, CNBC reported that the Cuban Central Bank will establish new rules for dealing with cryptocurrencies.

It was noted that the use of decentralized virtual cash could help Cuba bypass US sanctions that were imposed under former President Donald Trump and extended under Joe Biden.

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