Cuba authorizes use of crypto assets to skirt US sanctions

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Cuba authorizes use of crypto assets to skirt US sanctions

In the face of a cascade of US sanctions alongside a tempestuous socioeconomic landscape, Cuba, the communist-run Central American island country had decided to authorize and regulate the use of cryptocurrency, widely contemplated as a move to bypass US sanctions that had compounded the na transactions further amid a beleaguered economic backdrop with thousands of Cubans struggling to make ends meet amid a steep shortage of basic goods like of foods and medicines.

In factuality, a resolution published on Cuban Government’s official gazette later last week had unfurled that the Central Bank of Cuba could authorize the use of certain digital assets for making payments and issuing licenses ‘for reasons of socioeconomic interest.’ On top of that, although the move from Cuba, which had recently shrugged off its decade-old socialist economy and had allowed competitions against state-backed firms, seemingly had bolted out of the blues, but, with DeFi (Decentralized Finance) having been carried out in a number of US sanction-hit countries through digital assets, latest approach from Cuba would have come into being sooner or later, suggested analysts.

Cuba authorizes and seeks to regulate Cryptocurrency use

On top of that, the Cuban Government’s latest move to adopt crypto assets as a mainstream transaction modality comes over the heels of a growing uprising in interests on crypto assets in Latin America, as El Salvador became the first country to adopt bitcoin as a legal tender and Honduras had decided to allow cryptocurrency ATMs.

In tandem, a blistering inflation-surge in a swathe of LATAM nations spanning from Argentina to Venezuela had shored up interests in a deluge of digital assets.