El Salvador made headlines after deciding to recognize Bitcoin as an official currency in Cuba in June 2021, becoming the world’s first government to do so.
The Cuban government announced on Thursday that it will recognise and regulate the country’s cryptocurrencies.
According to sources, the Central Bank issued a resolution in the country’s Official Gazette stating that the Central Bank will develop cryptocurrency legislation and determine how to license suppliers of related services in the country.
According to Reuters, “the popularity of these currencies among Cuba’s digitally-educated population has increased, as spending dollars has become difficult, in part due to former President Donald Trump’s tougher embargo restrictions.”
El Salvador, a Central American country, announced in June 2021 that it will accept Bitcoin (BTC) as its official currency, making it the world’s first.
El Salvador’s President, Nayib Bukele, has announced plans to install 200 Bitcoin ATMs as part of the country’s attempts to legalize Bitcoin.
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Because cryptocurrencies are unregulated and subject to speculation, Cuba’s announcement, like El Salvador’s, is expected to be met with criticism.
Cryptocurrency transactions, on the other hand, are recorded on decentralized, distributed blockchains.
According to the Reuters story, because cryptocurrencies may be used for long-distance, anonymous transactions, they are sometimes thought to be popular with people who seek to avoid government restrictions, such as US limits on sending money to places like Cuba.
According to the Cuban ruling, the country’s Central Bank may permit the use of cryptocurrencies “for reasons of socioeconomic interest,” but only if the state assures that their operations are supervised. It also stated unequivocally that operations might or could not involve criminal action.
With cryptocurrencies becoming increasingly popular in emerging nations, a new Chainalysis analysis ranked India second in terms of global crypto adoption in 2021, despite global crypto adoption increasing by more than 880 percent the previous year.
In the analysis titled ‘The 2021 Global Crypto Adoption Index,’ Chainalysis ranked India second, trailing only Vietnam, which ranked first out of the 154 countries analyzed.