Cuba’s central bank has approved the use of cryptocurrencies, a move some experts say could help the Communist-run Caribbean Island bypass U.S. sanctions.
Cryptocurrencies, which allow financial transactions to be carried out anonymously in a decentralized manner, have been used in the past to get around sanctions, as well as to make payments and transfers more efficient.
However, organizations and individuals in Cuba who want to use cryptocurrencies still must obtain a license from the country’s central bank.
The bank said it would consider the legality, socioeconomic interest and project characteristics of any request before granting a license, which would be valid for one year.
The roll-out of mobile internet three years ago has opened the way for cryptocurrency transactions in Cuba, and enthusiasts on the island are growing in number as the digital coins and tokens help overcome U.S. sanctions.
The decades-old U.S. trade embargo cuts Cubans off from conventional international payment systems and financial markets. Cubans cannot obtain credit or debit cards for international use on the island and struggle to do so abroad.
Several of Cuba's Latin American neighbors have also taken an interest in cryptocurrencies, including El Salvador, the first country in the world to adopt Bitcoin (BTC) as legal tender.
