Banco Central de Cuba (BCC) – the country’s central bank – resolution 215 2021 to recognize cryptocurrencies like Bitcoin (BTC) is now in force.
According to the official Cuban news agency Prensa Latina, the order officially went into effect on Wednesday.
With cryptocurrencies now legally recognized by the BCC, Bitcoin and other cryptocurrencies can now be used for trading and investment transactions in Cuba.
As Cointelegraph reported, the central bank announced plans to recognize and regulate cryptocurrencies for the first time in late August.
In fact, Resolution 215 of 2021 contains provisions on licensing arrangements for cryptocurrency exchanges and other virtual asset providers operating in Cuba.
Despite legalizing the use of crypto assets in Cuba, the BCC has warned about the risks associated with cryptocurrencies.
While cryptocurrencies operate outside of the country’s banking system, according to the BCC, the use of virtual currencies carries significant monetary policy risks and financial stability concerns.
The Cuban central bank also warned of the possibility of malicious actors exploiting the perceived anonymity of cryptocurrency transactions to conduct illegal transactions.
Related: September 7th is “Bitcoin Day” in El Salvador, when BTC becomes legal tender
By recognizing cryptocurrencies, Cubans can enjoy an easier flow of money from abroad despite the US embargo on the communist government. Global money transfer services like Western Union have left the country largely under mounting pressure from Washington.
In fact, the country is following a path similar to El Salvador in adopting Bitcoin amid crippling US sanctions and the economic impact of the COVID-19 pandemic. El Salvador recently became the first country to accept Bitcoin as legal tender.
Interest in cryptocurrencies in Cuba has increased in recent years with virtual currencies associated with the possibility of financial freedom for many in the country.
The BCC recognizes that cryptocurrencies could be an important step in transforming the Cuban crypto industry as a full-fledged sector of the island nation’s troubled economy.