The Cuban Central Bank (BCC) has announced that licences for Virtual Asset Service Providers (VASPs) will be issued by the end of April. Similarly, in just a few days, the use of cryptocurrencies (particularly bitcoin and ethereum) has surged among Cubans.
Cuba is Rich, but US Sanctions Made it Poor
Cuba, as an oil-producing country, has abundant resources, but its people remain impoverished as a result of US sanctions over the years.
This is because, as a small country, Cuba relies heavily on imports to cover its fundamental necessities. However, due to the sanctions, Cuba is unable to make foreign transfers, resulting in the money not being adequately utilised.
Fighting The Sanctions
The United States has strengthened its sanctions against Cuba, causing the island's economy to tremble and the national currency to plummet in value. According to rumours, the US is putting restrictions on Cuba that aren't working on Russia. Perhaps the United States has gone too far, but Cuba also got a cure.
Cuba's central bank is likely the first central bank in the world to promote cryptocurrency adoption as a means of saving the country's economy. In contrast to other countries, where central banks have issued bans on cryptocurrencies (except under government or Court's pressure), Cuba's central bank has decided to allow this new economic technology.
Cryptocurrency = Problem Solved
Cuba is thought to have adopted cryptocurrency as a result of the circumstances in El Salvador and Russia. EL Salvador has become the Central American country with the most balanced economy after legalising bitcoin. By adopting cryptocurrency, Russia, on the other hand, has demonstrated that US, EU, and other international sanctions are ineffectual.
Cryptocurrencies have ushered in a new era in the global economy. Cryptocurrencies provide economic freedom to everyone, from countries to individuals. However, Countries imposing economic sanctions on the rest of the globe will continue to strive to regulate cryptocurrencies in order to maintain control over this new economy. as well.