The Central Bank of Cuba (BCC) through resolution 215/2021 enabled the use of certain virtual assets in commercial transactions throughout the territory of the Caribbean island. The legal instrument, signed by the president of the financial entity Marta Sabina Wilson González, recognizes the payments of Bitcoin (BTC) and other cryptocurrencies entered into force on September 15, after being published in the Official Gazette on August 26 and has as purpose “to enable the use of certain virtual assets in commercial transactions.“

The new regulatory framework also establishes “the granting of a license to digital asset service providers that operate throughout the national territory” and highlights that it is “the only entity that authorizes financial institutions and other legal entities so that they can use crypto assets between them.”

The norm stresses that state institutions, political, social or other organizations may not use digital assets without prior authorization from the regulatory body. In addition, the country undertakes to comply with “the international standards regarding the prevention and detection of money laundering and terrorist financing established by the International Financial Action Group (FATF).

Taking risks

The regulation shows some ambiguities since it does not establish what type of quote will be taken into account to carry out transactions, but it is explicit in alerting potential users to some dangers, stating that “they represent risks to monetary policy and financial stability, due to due to their high volatility (…) They are assets without the backing of monetary authorities and excessive anonymity of registered users.”

The president of the Caribbean island, Miguel Díaz Canel, indicated that the convenience of the use of cryptoactives has been evaluated and they want to prevent citizens from being “scammed by a chain of events that are happening worldwide.”

Benefits for the population

The main source of income for the Cuban population is the remittances sent by thousands of exiled people to their families so that they can purchase the products of the basic basket and satisfy the priority needs. And it is precisely in this process that bitcoin can be very useful for citizenship, since it offers “a fast and cheap way to send cross-border transfers without having to resort to traditional high-cost services.“

The American economist Steve Hanke made a publication recently where he exposes that the Caribbean country is among those that can obtain great benefits with the acceptance of Bitcoin because it registers “the highest average commission payment for sending remittances, which is about 10.53 %.“

M. Rodríguez

Source: criptonoticias.com

La entrada Central Bank of Cuba authorizes the legal use of cryptocurrencies apareció primero en Bitfinance.

Cuba officially published the regulations corresponding to the creation of micro, small and medium-sized enterprises (MSMEs) in both the public and private sectors.

As stated in Decree-Law 46, published in the Official Gazette, “the Constitution of the Republic of Cuba recognizes the confluence in the economic scenario of different types of property, thus it is necessary to regulate new economic actors, among they are micro, small and medium enterprises.”

The Cuban Government defines these companies as “economic units with legal personality, which have their own dimensions and characteristics, and whose objective is to develop the production of goods and the provision of services that satisfy the needs of society.”

It also establishes that MSMEs may be state, private or mixed property. The small ones can have a maximum of ten members, the small ones, 35, and the big ones, up to 100 people.

Privately owned companies can only be founded by natural persons permanently residing in Cuba, over 18 years of age. In the case of state-owned companies, they will be constituted by legal entities approved by the Ministry of Economy and Planning, while mixed entities will be composed of natural and legal persons of different types of property.

The companies will also be authorized to export and import in accordance with the provisions of current legislation and set the prices of their services and goods, except those that are centrally approved.

The approval of the creation of micro, small and medium enterprises must be authorized by the Cuban Ministry of Economy and Planning.

The standard also establishes that these companies “have the obligation to provide statistical information as provided in current legislation”. The text emphasizes that these companies are constituted as mercantile societies, which adopt the form of a limited liability company, by means of a public deed that is registered in the Mercantile Registry and acquire legal personality.

K. Tovar

Source: Swissinfo

La entrada Cuba publishes regulations related to small and medium-sized companies apareció primero en Bitfinance.

The Communist Party of Cuba (PPC) included bitcoin within the new guidelines drawn up for the 2021-2026 period, as indicated during the party’s VIII Congress.

Mercedes López Acea, a member of said political group, was in charge of giving the announcement, adding that the objective is to “advance the study of cryptocurrencies in today’s economy.”

At the moment there is no greater detail regarding this new strategy, but it is expected that this means that in the near future Cuba may open to the use of cryptocurrencies.

As reported by Granma, the official newspaper of the only political party admitted to the island, in addition to cryptocurrencies, other “strategic issues for the nation’s progress were discussed.” Among them are “the economic management model, investment policy, science, technology, innovation, their impact on society and social policy.”

K. Tovar

Source: Granma

La entrada Cuba includes bitcoin in its economic guidelines apareció primero en Bitfinance.