Cuba 🇨🇺 regulates the use of cryptocurrencies for commercial operations

[verita1]

This is good news for the country of Cuba and its inhabitants.
It is a resolution that will take effect on September 15 and regulates the use of digital assets in commercial transactions. Licenses will also be granted to providers of these services in relation to financial activities throughout the Cuban territory.
In the article that I read, it does not mention more details with which tools they have to educate the population, also as wallets that allow scalability of transactions.
I also do not know if the government of Cuba has any advisor in cryptocurrencies like El Salvador did so that the inclusion of cryptocurrencies in Cuba is the most suitable.
As I read in another article, it is known that unofficially there is a community of 10,000 Cubans that uses bitcoins.

I also wanted to know more about an official announcement from the Cuban government and I did not see it. Only the article mentions that it was a decree on the official Gazette. I went to the website of the Official Gazette of Cuba and I was not able to see the decree either. Perhaps it is not yet available to the public, hopefully it is available.

https://www.gacetaoficial.gob.cu/

For my part, I will be attentive while events unfold to contribute how the Cuban people are receiving the news.
 
https://apnews.com/a5c4dd51375a076945b472dbb824f3d4

Profile on Twitter of Erick García programmer, YouTuber and bitcoiner in Cuba.

https://twitter.com/ErichGarciaCruz/status/1431336263974535182?s=19

[kryptqnick]

I read a bit on the topic, and is it really good news? When the Central bank is declared an authority that regulated the crypto market, my initial reaction is cautious because banks tend to be the enemies of cryptos, and it seems like a conflict of interest for them to dictate the rules for the crypto industry, as they are specifically interested in staying in business and ensuring that cryptos will not replace them or fiat. Then again, they'll allow transactions due to the socioeconomic interest, so maybe it's going to be good... Nevertheless, I'm not sure how to react to this, especially given that, apparently,

“This is a conservative government still set in traditional Marxist ways. In fact, the communist Cuban central bank was founded by Che Guevara.

[Poker Player]

I read a bit on the topic, and is it really good news? When the Central bank is declared an authority that regulated the crypto market, my initial reaction is cautious because banks tend to be the enemies of cryptos, and it seems like a conflict of interest for them to dictate the rules for the crypto industry, as they are specifically interested in staying in business and ensuring that cryptos will not replace them or fiat. Then again, they'll allow transactions due to the socioeconomic interest, so maybe it's going to be good... Nevertheless, I'm not sure how to react to this, especially given that, apparently,

For me, they don't know very well what is going on but they have seen an opportunity like El Salvador: "The resolution says the Central Bank can authorize use of cryptocurrencies “for reasons of socioeconomic interest” but with the state assuring that their operations are controlled."

In short, they want to control what cannot be controlled. In the case of Bitcoin, because it is decentralized, in the case of centralized shitcoins, the headquarters is not in Cuba and I doubt that what the Cuban government says will have much impact on the operation of shitcoins.

[Bttzed03]

We might be overthinking this. The way I see it, the Central Bank will issue licenses to centralized crypto service providers and they will impose strict rules to monitor the transactions that goes through their platform. Those things are already happening in every country where CEXes are allowed to operate.

[buwaytress]

Not sure if it's great news, but it can't be bad news. Attempting to control what isn't controllable, not sure that's really accurate as commercial operations will have a more difficult time trying to mask their transactions, given just how big they should be -- compared to retail and p2p anyway. At least it's not the same level of US govt idiocy on attempting to sanction Bitcoin addresses in the past ha.

[pawanjain]

We might be overthinking this. The way I see it, the Central Bank will issue licenses to centralized crypto service providers and they will impose strict rules to monitor the transactions that goes through their platform. Those things are already happening in every country where CEXes are allowed to operate.

Even I think the same. The Central banks will have the power and authority to impose regulations on crypto service providers.
The Central banks will not directly regulate cryptocurrencies but the service providers that use cryptocurrencies.
Also, the Central bank might give the liquidity to these crypto service providers for their services.
This is what I think will happen but certainly anything can happen. We will know soon how things proceed in Cuba.

[Ekeleboy]

While the adoption of cryptocurrency for commercial transaction is great, the government trying to monitor these transaction isn't such a greats idea.
Besides, most crypto currencies are decentralized. It either the commercial operators are directly monitored or there's another plan in place , probably not know to us yet.
Either ways, it'll be made clear soon.

[tippytoes]

While the adoption of cryptocurrency for commercial transaction is great, the government trying to monitor these transaction isn't such a greats idea.
Besides, most crypto currencies are decentralized. It either the commercial operators are directly monitored or there's another plan in place , probably not know to us yet.
Either ways, it'll be made clear soon.

If their citizen are already using crypto, then, this move is just a way how to regulate and of course, possibly tax crypto transactions. Because if they will not regulate the use, how can the government get tax from crypto-related businesses? So in a way, it is also their advantage why they are doing this move. Though the government can't get the full picture of those crypto transactions, at least get something from these transactions. Better than nothing, right?

[SFR10]

I also wanted to know more about an official announcement from the Cuban government and I did not see it. Only the article mentions that it was a decree on the official Gazette. I went to the website of the Official Gazette of Cuba and I was not able to see the decree either. Perhaps it is not yet available to the public, hopefully it is available.

https://www.gacetaoficial.gob.cu/

Here you go: Official Gazette No. 73 Extraordinary of 2021
^{- You have to download the PDF file to see everything [it's in Spanish].}
Regardless of how they'll try to regulate it, personally, I think it'll be more beneficial to the government, as opposed to its citizens.
^{- Perhaps they're planning to legally and indirectly use it as a workaround to US sanctions.}

[dkbit98]

One communist country is out (read China) and other communist country is now into Bitcoin and crypto, but I have to be honest and say that I don't know real situation there.
I know they still drive ancient cars and I am not sure if they are even allowed to own computers and smartphones, or use asic miners for Bitcoin.
After checking Numbeo.com website I can see that average monthly salary in Havana Cuba is now less than $39, and average number for all Cuba is around $36 per month, that is currently only 0.00074 BTC!
Here comes more interesting part, Basic utilities bill is around $23, and price of internet connection (+60 Mbps, Unlimited Data, Cable/ADSL) is around $140!
That is almost 4 times of their basic salary that you need to pay just the internet bill for one month, and you need to add other bills there.
It would be very good idea for any citizen of Cuba to own Bitcoin or inflation will most likely eat any leftovers of wealth they have left.


https://www.numbeo.com/cost-of-living/country_result.jsp?country=Cuba

[LittleBitFunny]

Not sure if it's great news, but it can't be bad news. Attempting to control what isn't controllable, not sure that's really accurate as commercial operations will have a more difficult time trying to mask their transactions, given just how big they should be -- compared to retail and p2p anyway. At least it's not the same level of US govt idiocy on attempting to sanction Bitcoin addresses in the past ha.

Actually, they are willing to increase their revenue source nothing else. As a result of Trump's sanctions, the state of their revenue sector was not very favorable. When they realized that a large number of people were involved in cryptocurrency and that they were benefiting. the government thought why not deduct a tax from their profits. They want to authorize the cryptocurrency to boost their revenue. you know, they have a vested interest in formulating this legal tender for accepting cryptocurrency officially.

[davis196]

We might be overthinking this. The way I see it, the Central Bank will issue licenses to centralized crypto service providers and they will impose strict rules to monitor the transactions that goes through their platform. Those things are already happening in every country where CEXes are allowed to operate.

Yes,but it's way better for the crypto industry to be strictly regulated,rather than totally banned.
It's kinda sad that countries like El Salvador and Cuba are way ahead in terms of cryptocurrency adoption,compared to the developed countries in America,Europe and Asia.Underdeveloped countries seem way more "crypto friendly",while the developed countries remain kinda hostile towards the crypto world.
AFAIK,there are severe protests in Cuba and the economic situation on the island is pretty bad.
Maybe the communist government in Cuba is about to be dethroned.This will happen sooner or later.

[bryant.coleman]

I am getting really suspicious about the whole episode. When socialist countries talk about "regulation", it doesn't have the same meaning as it has in the western nations. First they will collect information about the cryptocurrency users and their holdings. And when the time is correct, they will move towards seizing these valuable assets. And Cuba is not new to this type of asset confiscation. It has occurred on a regular basis ever since Fidel Castro became the Prime Minister in 1959, by overthrowing Fulgencio Batista.

[buwaytress]

At least it's not the same level of US govt idiocy on attempting to sanction Bitcoin addresses in the past ha.

Actually, they are willing to increase their revenue source nothing else. As a result of Trump's sanctions, the state of their revenue sector was not very favorable. When they realized that a large number of people were involved in cryptocurrency and that they were benefiting. the government thought why not deduct a tax from their profits. They want to authorize the cryptocurrency to boost their revenue. you know, they have a vested interest in formulating this legal tender for accepting cryptocurrency officially.

It's the most practical way for any state to get in on the economy. You know you can't stop it (among many things the state can't really stop) if your level of infrastructure to police citizens isn't that great, might as well regulate and take your cut.

With the US, though, it could get to a point where it's ridiculously difficult to want to do good by your tax obligations, that it becomes a deterrent to growth, not to mention innovation overall.

[Dhoe]

Cuba regulates the use of crypto for commercial operations, I don't understand about this, maybe this will be a good move for crypto or vice versa, because we know banks are actually more inclined and definitely hostile to crypto, so we must be careful, and always Be wary of every step they take, it sounds good but we don't know what will happen in the future.

[u/isoeaera]

Great news.Cuba, ElSalvador, and now Ukraine, with Panama along the way, cryptocurrencies will surely be the real deal.Well, with the developments, everyone will certainly be concerned about exchanging their Fiat, say USD, to Crypto. Fortunately, there are exchanges to help you in the conversion.For instance, https://www.bestchange.com/ allows you to buy and sell crypto and fiat.The process is easy because it offers more than 50 exchanges on its site , with the one offering the best rates listed first.

[zanezane]

Aren't Cuba a communist country? Meaning that the commercial operations there aka businesses aren't that many because the state has overall control of every infrastructure in there. And from what I've heard, it's only about 10% are private enterprises there so I don't think that bitcoin's going to be any good in there.

[Artemis3]

Yes, but for example a tourist from El Salvador would not need to buy € anymore, so its a little improvement for the tourist even if the Cuban State is taking the coins.

Last time i heard, the Cuban State didn't want $ but €, that is why tourists had to get those first. I guess now they would take BTC as well.


As for the people, if they start using it directly among themselves (not exchanging it) they can do it off the radar, but they would need to learn.