The Cuban government has announced it will recognise and regulate cryptocurrencies for payments for ‘reasons of socioeconomic interest’.
The move coincides with new attempts by the Communist regime to revive the country’s ailing economy.
Cryptos have become an alternative for tech-savvy Cubans since US dollar transactions between the island and the United States became harder after former US president Donald Trump brought in sanctions on remittances last year.
Due to the economic embargo imposed by Washington nearly 60 years ago, Cuba is often shut out of financial operations that may run through the US financial system. Under President Obama’s administration, some elements of the embargo were eased but later reversed by President Trump.
"Remittances to the island, mainly from Cuban Americans, are believed to be around US$ 2 to US$ 3 billion annually, representing the third biggest source of dollars to the country after the services industry and tourism."