This Communist country will regulate and recognise cryptocurrencies as demand grows for the digital currency
As the popularity of cryptocurrency continues to gain speed in across the world, Cuba says that it will officially recognise and regulate crypto payments.
The central bank says that it will set rules and determine how to license providers in the space. The state cited “reasons of socioeconomic interest” are behind the decision.
The move could help the Communist nation circumvent American sanctions which were enacted by former president Trump.
The fact that Cuba no longer accepts USD is major news. This is only the first domino to fall. Uncle Sam has 30 trillion of debt, and so this debt puts the USD on the cliff. Crypto is value outside of fiat. The network effect ensures the future of crypto. $crypto
The decision to recognise crypto marks a historic moment
“It’s historic that they are embracing it,” Boaz Sobrado told CNBC. Sobrado is a London-based fintech data analyst, who spent four years working in crypto in Cuba.
“This is a conservative government still set in traditional Marxist ways. In fact, the communist Cuban central bank was founded by Che Guevara. The fact that they are cautiously regulating shows they are interested in what it can bring them,” Boaz said.
People participate in a rally outside the White House in Washington, Tuesday, July 13, 2021, in support of the protesters in Cuba. (AP Photo/Susan Walsh)
US-Cuba relations
Current US president Joe Biden is yet to reverse the restrictions, despite expectations that he would normalise relations with the country.
Instead, Biden has cracked down even further following government retaliation to protests in Cuba.
The state has assured that it will be keeping a tight control of crypto transactions within its borders. It also has explicitly outlined that crypto will not be used to facilitate illegal activity.
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Binance has launched a prepaid crypto card in Brazil in partnership with Mastercard
The card will be available to all Binance users in Brazil with a valid national ID, and allow them to make payments and pay bills with 13 cryptocurrencies.
The product is now in a soft-launch phase and “will be widely available in the coming weeks”.
Brazilian consumers are popular crypto users, as nearly half have made made at least one crypto transaction in the past year.
This isn’t the only South American nation to have the partnership between the two financial giants, as Argentina also has a similar offering.
The South Korean Ministry of Justice has announced it is introducing a ‘virtual asset tracking system’
The aim will be to strengthen the tracking of money laundering and recovery of criminal proceeds using cryptocurrency.
Three-quarters of illegal foreign exchange transactions in South Korea are crypto-related.
The ministry will use the tracking system to check and monitor transaction records, extract details on the relationship between transactions, and confirm fund sources before and after transfers.