Advertisement
In an effort to develop Cuba's fledgling tech industry, Banco Central de Cuba (BCC), the country's central bank, will begin issuing licenses to Bitcoin (BTC) and other digital asset service providers (VASP).
According to a report on Tuesday, the central bank of Cuba's resolution announces that anyone wishing to provide services related to digital assets needs to obtain a license from the central bank.
"The Central Bank of Cuba, considering the application for a license, will assess the legality, opportunities and socio-economic benefits of the initiative, the nature of the project, the responsibility and experience in the applicant's field."
Furthermore, the resolution also states that organizations operating without a license and are required to obtain a license will be subject to penalties under the island nation's financial and banking regulations. This decision will take effect 20 days after the announcement, which is on May 16. They also note that the licenses can be extended to the second year: "Licenses to provide digital asset services will be valid for one year, which can be extended to the second year because of the experimental and novel nature of the field."
They also emphasized the bank's provision that VASP should not be allowed to cease operations without confirmation from the central bank.
In September 2021, the BCC issued a regulation recognizing cryptocurrencies as Bitcoin as a legitimate payment method.
Although the agency has been concerned about the dangers of using cryptocurrencies, the central bank is the only one that has the power to license vasp.
By legalizing digital assets, Cuba can enjoy more accessible remittance services and the ability to send and receive money around the world. This could trigger a new cultural wave in the nation's technological development amid 60 years of U.S. sanctions. Under increasing pressure from Washington, many international money transfer companies have left the country.
(*Remittance service: is a service that helps those residing or working abroad to send money to relatives in their home country. Remittances are the third largest source of dollar revenue in Cuba after the service and tourism industries. U.S. administration sanctions have cost Cuba more than $130 billion in remittances over six decades.In
fact, the country is trailing El Salvador and the Central African Republic in using Bitcoin amid escalating U.S. sanctions and the economic impact of Covid-19. Cuba has become increasingly interested in cryptocurrencies over the past few years with the potential for economic autonomy for the Cuban people.
