Cuba will start issuing licenses for the use of cryptocurrencies

The permits will be valid for one year with the possibility of renewal

28.04.2022 - 11:30

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What’s new? The Central Bank of Cuba (BCC) has issued new regulations for virtual asset service providers, under which legal entities will be issued a license to use cryptocurrencies. The permit is valid for one year with the possibility of renewal, the new law coming into effect on May 16.

Resolution of the Central Bank of Cuba

What is the economic situation in Cuba? The country is under pressure from US sanctions. Cuba’s GDP has fallen by 13% in two years. Pavel Vidal, a former Cuban Central Bank economist, believes that a favorable legal framework for cryptocurrencies may benefit the country. He added:

“This [digital assets] can reduce the cost of these international transactions and generate an alternative to operations in dollars, less sensitive to the sanctions scheme.”

What had happened before? El Salvador’s President Nayib Buquele said he would make it easier for crypto investors to obtain citizenship. He sent bills to Congress that would speed up bureaucratic procedures and create new tax incentives.

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