Cryptocurrencies Such as Bitcoin and Other Cryptocurrencies Will Be Recognized and Regulated in Cuba
According to Bloomberg, Cuba’s administration said on Thursday that it would “recognize and supervise” Bitcoin and other cryptocurrencies for use as payment options on the island. Earlier this month, a resolution was published in the local Cuban Official Gazette. The banking system would establish regulations governing Bitcoin and other digital assets to define licensing requirements for providers of cryptographic goods on the island. According to the decree, the state will also serve as a check on the bank’s operations, prohibiting its use of Bitcoin for “illegal acts.” Before we move on with our guide, please register yourself on the bitcoinprime.software , and learn to trade efficiently in the bitcoin currency.
Because of strict embargo regulations in Cuba, it has become increasingly impossible to transact with dollars, and as a consequence, Bitcoin has gained in favor among the country’s technologically adept. According to Bloomberg, some Cubans are already making online transactions using cryptocurrency in conjunction with gift cards, according to a local coder.
The news comes only ten days before El Salvador will become the first nation to legalize Bitcoin as a means of removing the costs and risks associated with sending cash remittances, which are a cornerstone of both countries’ financial systems. Bitcoin regulation may be implemented as a condo government’s awareness that individuals are using the currency to circumvent U.S. prohibitions on transferring money to Cuba, which has been in place since 1961.
The Cuban people had faced their most difficult economic situation since the early 1990s when the Soviet Union disintegrated. To get through a “Special Period,” longstanding tyrant Fidel Castro urged people that they needed to come together as a nation. Food shortages, blackouts, hundreds of people escaping to Florida on perilous rafts, and a dramatic depreciation of the peso, which links to the Soviet ruble, were hallmarks of the period. Cuba’s economy fell by 35% between 1991 and 1994, and the country’s overall quality of life worsened significantly.
During the summer of 1994, when an anti-government demonstration known as the Maleconazo revolt erupted in Havana, tensions reached an all-time high. The official ration system was failing to sustain the people without the assistance of the Soviet Union, and essential commodities were suddenly only accessible for purchase with dollars, which were becoming more costly for Cubans to acquire with their peso salaries and pensions. In reaction, many protesters gathered on the Malecon beachfront, demanding an end to the government’s reign of terror and oppression.
Because the internet did not exist at the time, the government was able to put down the movement via police violence while ensuring that most Cubans were unaware of what had occurred. Although the Maleconazo was a massive demonstration of discontent, it was the island’s largest demonstration since the revolution.
Cruz said that any Cuban companies who do not use Bitcoin today to engage with the international financial system would learn the hard way and need to adapt and embrace as a result. “Bitcoin will be required for all externally exposed businesses,” he said emphatically. “In Cuba, we have a phrase that goes something like this: You have to get on the bus because the bus is departing the town.
He believes that Bitcoin usage is already higher per capita in Cuba than in Europe or Canada, but he admitted he was not always a believer in cryptocurrency. His friends and coworkers were constantly attempting to expose him to cryptocurrencies, he claimed, but they were trying to persuade him to do it so that he could subsequently transfer the Bitcoin to pyramid schemes like Arbistar and Trust Investing. In reality, he was under the impression that it was a fraud until March 2020.
“I was very skeptical,” he said. Cruz produced a famous video in March 2020 in which he exposed Trust Investing as a pyramid scam and demonstrated how it worked in practice. As a result of the video’s reception, several individuals urged him to investigate additional investment opportunities. One of them was bitcoin.
According to his website, in April and June 2020, he will go “down the rabbit hole” and “find the holy grail,” according to his website. “You start understanding the genuine restrictions that Cubans have, as well as the freedom that Bitcoin offers,” he explained to me via the prism of Bitcoin. It is as if you have a new perspective on the world. “We are unable to make use of conventional payment methods.” We’re in a bind. Assuming this is true, “I will create my payment provider utilizing Bitcoin, and we will build a company around this potential,” he said. ”
This article has been scheduled in accordance with Socialnomics’ disclosure policy.
