Does Cuba Accept Bitcoin?
The introduction of cellular data three years ago paved the path for digital currencies in Cub. The number of supporters on the island increases as the coins help alleviate restrictions imposed by US sanctions. Cuba will accept , recognize and controll the Bitcoin and other cryptocurrencies. According to a resolution published in the Official Gazette on August 26th, 2021, the Central Bank has to establish rules for such currencies and how to license suppliers of associated services within Cuba, citing “reasons of socio-economic interest.” As it has become more challenging to utilize dollars due to harsher embargo measures enforced by former President Donald Trump, the appeal of such currencies has surged among a technologically skilled group in Cuba.
Why There Is a Need for Cryptocurrency in Cuba?
There were no crypto exchanges in Cuba where you may buy cryptocurrency with Cuban pesos. This is only possible with WhatsApp or Telegram groups. Dealers and buyers must rely solely on trust to negotiate an amount and price. While expecting the sellers to keep their word and transmit bitcoin to the chosen wallet, the crypto purchaser will deposit Cuban pesos into a bank account.
Unfortunately, scams on these platforms are rampant, and customers frequently receive nothing. Users must do it this way since crypto exchanges such as Coinbase, Binance, and OpenNode immediately restrict crypto customers from complying with the embargo.
Businesses cannot use online payments to automate the sale of a book or a basic delivery service in Cuba via the web unless the owner has a family, friend, or business associate in another country who can do so under a non-Cuban persona.
How Bitcoin has Solved the Problem?
As Bitcoin provides clients with a QR code to accept transactions, Cuban shops must have a personal wallet to take bitcoin payments. If bitcoin payment automation services such as OpenNotes were available in this country, local businesses could handle online and in-person payments. Unfortunately, due to the embargo, this has not yet occurred. Nevertheless, in 2019, most Cubans embraced bitcoin and launched QvaPay.
This startup enables Cubans to receive and send transfer transactions at high speeds and low rates over the Bitcoin blockchain. Today, the service has over 48,000 customers who consider cryptocurrency the only means to move money.
The Central Bank of Cuba permitted specific cloud services for business contracts in August and the issue of licenses to virtual currency service providers to carry out detailed financial activities, such as payment processing.
Companies must follow local rules — in this case, the US embargo – and prevent Cubans from accessing their services. However, this also precludes these companies from providing payment systems that economically empower their users.
The great news is that these rules or territorial locations do not bind bitcoin; it is unconcerned with embargoes.
How the Licenses will be provided for crypto?
As we all know, cryptocurrencies will allow Cuba to avoid US sanctions while battling an economic catastrophe. The country’s central bank has been given the authority to issue licenses, and the new rule will go into force in May 2021. According to the government decree, the central bank will approve appointments after assessing the “legality, opportunity, and socioeconomic interest of the initiative.” Local and foreign businesses that do not have a legal license may face penalties.
Conclusion:
It stands true that Cuba has adopted cryptocurrency, and usage of the same is legal, but still, the situation is ambiguous over there. On the one hand, Bitcoin use is growing throughout the island. On the other hand, in Cuba, bitcoin exchanges rely on newly established platforms such as Qbita and BitRemesas. There is currently little information on the exact number of cryptocurrencies in Cuba. According to estimates, the bitcoin ecosystem in Cuba is modest but increasing.
But it is a bit obvious that the usage of bitcoin as a cryptocurrency will benefit the economic progress as, after the sanctions, the economy of the same is diminishing. In other words, the country is primarily reliant on remittances transferred to the United States by Cubans. However, economic sanctions imposed on the island have hampered transfers, despite predictions that cryptocurrency could aid Cuba in its current predicament.
Can one trade-in Cuba by using bitcoin?
Customers in Cuba’s main cities can purchase bitcoin from any of the exchanges listed on this page.
Is a bitcoin ATM available in Cuba?
In Cuba, a bitcoin machine has been installed at Phillips 66 Gas. You may buy BTC, BCH, ETH, and LTC for USD.
