Cuba now recognizes cryptocurrencies as legal means of payment. Last week, a new law was passed in Cuba from the Banco Central de Cuba (BCC), the Cuban central bank. Local news reported this on September 15:
— Banco Metropolitano (@BanmetCuba) September 15, 2021
The Cuban central bank’s plan to introduce new crypto regulations was announced last month. On Wednesday, September 15, the new legislation, Resolution 215 of 2021, went into effect.
That means cryptos such as bitcoin (BTC), ethereum (ETH) and cardano (ADA) can now be used in commercial transactions and investments in Cuba. In addition, the BCC now licenses cryptocurrency exchanges and other types of crypto businesses.
Nevertheless, the BCC warns against risks related to crypto. The agency claims that crypto, which falls outside central bank regulation, could pose significant policy risks and threaten financial stability due to their high volatility, complex nature and decentralized infrastructure.
This is not the same as the bitcoin law that recently went into effect in El Salvador. That Central American country has recognized bitcoin as an official currency since September 7, forcing retailers to adopt it.
People are speculating that this may be the first step for Cuba to move in such a direction as well. The country is still struggling with strict sanctions from the United States and these can probably be circumvented with crypto. That idea came out as early as 2019, when President Miguel Diaz-Canel gave a speech about it. The recently deceased John McAfee then backed the idea.