Bitcoin Slightly Drops to 56 Million KRW... Cuba Recognizes Bitcoin as a Payment Method

Cuba Becomes Second Country After El Salvador in Latin America to Adopt Bitcoin as a Payment Method

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin slightly dropped to the 56 million KRW range. Meanwhile, the Latin American country Cuba announced that it will recognize Bitcoin as a payment method.

According to the domestic cryptocurrency exchange Upbit, at 2:09 PM on the 29th, Bitcoin recorded 56.85 million KRW, down 1.01% from the previous day. Bitcoin rose to 58 million KRW at 10:16 AM that day but has been declining since then.

Cuba announced that it will recognize cryptocurrencies including Bitcoin as a payment method and incorporate them into the formal financial system. On the 28th (local time), the US economic media CNBC reported that the Central Bank of Cuba (BCC) plans to recognize cryptocurrencies as a payment method and establish related regulations. Cuba stated that anyone operating cryptocurrency-related businesses must obtain a license from the central bank.

Cuba’s acceptance of cryptocurrencies as a payment method is due to conflicts with the United States. During former US President Donald Trump’s administration, the US imposed an economic blockade on Cuba, reducing economic exchanges between the US and Cuba. At the same time, the COVID-19 pandemic overlapped, causing a sharp decline in the use of the US dollar. CNBC reported that cryptocurrency usage increased in Cuba during the period when global exchanges were blocked and COVID-19 was spreading.

Manalini Tangka, a professor in the Department of Anthropology at Portland State University, explained in an interview with CNBC, “Cuba’s internet environment is improving, and the number of people owning smartphones is increasing,” adding, “The low value of Cuba’s currency is also a factor that led to choosing Bitcoin as a payment method.”

Before Cuba, another Latin American country, El Salvador, also adopted Bitcoin as a payment method. In June, the El Salvadoran Congress passed the Bitcoin Law, granting Bitcoin the status of a major currency. The Bitcoin Law is scheduled to take effect on September 7. However, protests opposing the adoption of Bitcoin as a payment method continue in El Salvador, indicating ongoing difficulties.

This content was produced with the assistance of AI translation services.