Bitcoins

Cuba’s Move Shows Cryptocurrencies Are Gaining The Recognition They Deserve

Cryptocurrencies are slowly gaining global recognition, and Cuba is the latest country looking to officially regulate crypto payments.

Cuba Set To Recognize And Regulate Crypto Payments

The Cuban government is currently working on a bill that would officially recognize cryptocurrencies in the country. The bill also seeks to regulate cryptocurrency payments despite not acknowledging them as legal tender.

According to a report by Al Jazeera earlier today, the government will allow cryptocurrency payments to help the country circumvent the sanctions put in place by the United States. This would be similar to what Iran is doing to bypass America’s sanctions.

The Cuban Central Bank is currently working on a set of regulations on cryptocurrencies. The apex bank is also working to determine how it would license cryptocurrency service providers in Cuba. This latest development comes as cryptocurrencies become very popular in Cuba. It has become very tough for Cubans to send and receive US Dollars since the sanctions imposed by Donald Trump.

Bitcoin and other cryptocurrencies have gained adoption in struggling economies globally. El Salvador has become the first nation in the world to officially adopt BTC as a legal tender. Other countries like Nigeria, Zimbabwe and more have seen a huge influx of cryptocurrency investors and traders, thanks to the economic hardships in those regions.

While El Salvador is the first to make the move, more countries could follow suit. At the moment, some countries are already officially recognizing Bitcoin and other cryptocurrencies as either an asset class or medium of exchanges.

Bitcoin Could Recover Recent Losses

Bitcoin has suffered a dip over the past few days, dropping from its high above $50k during the weekend to trade below the $47k yesterday. However, the price of the leading cryptocurrency is slowly recovering as it is now trading above the $47k region.

BTC/USD chart. Source: FXEMPIRE

The cryptocurrency market could continue its slow recovery during the weekend to reach the $50k again if the bullish momentum is maintained.