The Cuban government announced yesterday that it will recognize and regulate cryptocurrencies for payments.
The announcement came as resolution by the country's own central bank, defining how citizens will be able to use cryptocurrencies.
The news comes at a time when the local government is looking for solutions to reduce friction with the population. Last month, several protests took place over the lack of food and medicine amid a serious economic crisis, aggravated not only by COVID-19, but also by foreign sanctions.
In addition to the lack of basic necessities such as food and medicine, Cubans are also suffering from the consequences of the government's decision to end its dual currency system.
The Cuban government has not provided any significant details as to why cryptocurrencies will be regulated and recognized in Cuba other than for "reasons of socio-economic interest".
While Cuba did not explicitly say that any cryptocurrency would become legal tender, the announcement signals a move to incorporate cryptocurrencies into Cubans' daily life and payment needs. In a way, following in the footsteps of El Salvador, which decided to recognize Bitcoin as legal tender.