Cuba also allows bitcoin as a means of payment | Financial

The Cuban central bank reports through a statement in the Official Gazette that it recognizes and regulates the crypto market for payments on the island.

The country says it explicitly wants to maintain full control over the market and vigorously fight illegal excesses, but will allow the use of cryptocurrencies for ‘socio-economic purposes’. More details about the use has not yet been released by the central bank.

Havana is also responding to the massive influx of Cubans to crypto coins, because its own peso has fallen in value. The black currency market is thriving. With crypto coins, consumers can transfer value to each other, without the intervention of a bank.

Black market growing

Cubans have been seeking refuge on the black market in US dollars as a fixed-value currency for years. President Miguel Díaz Canel ordered an investigation into cryptocurrencies in May, as the economy has been hit by severe weather and sanctions and its own currency is devaluing.

According to a government source, damage from sanctions deployed under US President Trump has amounted to $20 billion for Cuba.

The dollar has been banned as official currency this year following new US sanctions against communist Cuba.

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