Cuba will recognize and regulate cryptocurrency, opening the door for Credit Reporting.
The cherished island nation of Cuba, where the American people all want to travel to, meanwhile the US government forbids it. Sanctions from the American country since the Cuba Missile Crisis has affected the growth and economy of Cuba. This beautiful country has been independent since the early 1900’s and has over 11 million people. Cuba is rich in culture with much room for growth. However, Cuba has been a Marxist country for many years which is another reason for conflict with the United States.
Recently, the Cuban government has stated the importance of cryptocurrency implemented into their financial network. To the point that they want to recognize and regulate cryptocurrency and digital assets in Cuba. The Cuban Central Bank is in the process of formulating rules for transactions within the cryptocurrency community. Along with formulating rules for transactions the Cuban Central Bank is also looking at ways to issue licenses for not only service providers but also businesses. It is said, to date, that approximately one hundred thousand Cuba citizens have been using Bitcoin and other cryptos to pay and receive payments. Since Cubans can’t access international debit and credit cards, it is hard to receive payments from different countries.
This is where LedgerScore can establish a footprint in Cuba. For the first time, the people of Cuba will have access to creditworthiness. Credit scoring cryptocurrency transactions is the answer for them, and LedgerScore is the tool they can use to get their credit score.
Cuba has faced economic droughts over the years due to heavy sanctions from the US. Just last year, Western Union closed all 400 offices it had in Cuba due to sanctions. This was a huge blow to transferring of funds for the Cuban population. Here is another opportunity for LedgerScore and its products. Short- and Long-term fixed interest rates with undercollateralized stable coin loans powered by LedgerScore’s credit reporting. What this means is that Cuban citizens will be able to offer Decentralized P2P lending.
Setting new rules with how to deal with cryptocurrency is Resolution 215. The Cuban Central Bank recently published it in the Official Gazette. The resolution noted that the country’s central bank will frame rules for virtual currencies. “The Central Bank of Cuba, for reasons of socio-economic interest, may authorize the use of certain virtual assets in commercial transactions, and license virtual asset service providers for operations related to financial, exchange and collection or payment activities,” the resolution read. A survey by Deloitte suggests that cryptocurrencies could even replace fiat currencies.
LedgerScore gives financial institutions and Cubans the compliant tools necessary for them to use credit scores for those who use crypto. Opening the door to access credit. Currently, Cuban citizens have very few choices financially due to US sanctions and embargos. They cannot access credit or international debit cards. With Western Union pulling out it is much more difficult to receive or transfer money internationally.
In conclusion, LedgerScore will open significant opportunities for the People of Cuba. This will open financial institution's doors and P2P borrowing along with more business opportunities. The ability to look at a borrower’s crypto assets, income, payment history, transactions, and credit strength will arm citizens with a powerful LedgerScore Credit report.