Crypto Moves — Bitcoin, Ether up; Cuba approves crypto services; Central African Republic adopts Bitcoin as official currency

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Thursday, up 2.31 percent to $39,323 as of 09.15 a.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $2,880, up 1.08 percent, according to data from Coindesk.

Cuba approves cryptocurrency services

The Cuban central bank issued regulations on Tuesday for virtual asset service providers, after giving a nod last year to the personal use of cryptocurrencies, a move some experts said could help the Communist-run Caribbean island skirt stiff US sanctions.

Cryptocurrencies, which allow financial operations to be carried out anonymously in a decentralized manner, have been used in the past to get around capital controls, as well as to make payments and transfers more efficient.

The bank authorization, published Tuesday in the government’s official gazette, requires those wishing to use cryptocurrencies to obtain a license.

The bank said it would consider the legality, socioeconomic interest and project characteristics of any request before granting a license, which would be valid initially 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 currencies help overcome obstacles created by US sanctions.

Central African Republic adopts Bitcoin as an official currency

Central African Republic has adopted Bitcoin as an official currency, the presidency said on Wednesday, becoming the first country in Africa and only the second in the world to do so.

Despite rich reserves of gold and diamonds, Central African Republic is one of the world’s poorest and least-developed countries and has been gripped by rebel violence for years.

A bill governing the use of cryptocurrency was adopted unanimously by parliament last week, said a statement signed by Obed Namsio, chief of staff of president Faustin-Archange Touadera.

“The president supports this bill because it will improve the conditions of Central African citizens,” Namsio told Reuters, without elaborating.

In the statement, he called it “a decisive step toward opening up new opportunities for our country.”

Central African Republic is one of six nations that use the Central African CFA franc, a regional currency governed by the Bank of Central African States. 

(With inputs from Reuters)