Cuba to recognize cryptocurrency payments to circumvent US sanctions

Cuba will recognize and regulate cryptocurrencies for payments to help circumvent toughened embargo rules originally imposed under former US President Donald Trump.

The country's central bank will set rules on cryptocurrencies and determine how to licensing procedures, according to a resolution published in the Official Gazette.

The resolution also stated that the central bank can authorize cryptocurrency use for "socioeconomic interest” but with the state assuring operations are controlled.

It added that operations could not involve illegal activities.

The popularity of cryptocurrency has grown in Cuba among some technologically savvy groups, as it has become increasingly difficult to send and use US dollars on the island.

Because they can be used for long-distance transactions that are supposedly anonymous, they are often popular with people attempting to evade government regulations, which could include circumventing US restrictions on sending money to Cuba.

Cryptocurrencies are usually independent of any central bank and use blockchain computer codes to track transfers.

While some expected President Joe Biden to normalize relations, as former President Barack Obama did, he has instead imposed further sanctions against Cuban officials following crackdowns on rare protests in the country.

El Salvador would also recognize the use of the cryptocurrency Bitcoin to encourage its citizens living abroad to remit.