Bitcoin Stalls as Cuba Announces Plans to Recognize Crypto Industry

Azeez Mustapha
29 August 2021 | Updated: 29 August 2021

Cuba has announced that it plans on recognizing and regulating cryptos like Bitcoin (BTC) for payments. The government of the Caribbean nation revealed its intentions via Resolution 215 published on Thursday. The resolution stated that the Central Bank of Cuba would draft rules and regulations for the industry.

The resolution also noted that financial institutions and other recognized organizations in Cuba can “only use virtual assets among themselves and with natural persons, to carry out monetary-commercial operations, and exchange and redemption; as well as to satisfy pecuniary obligations, when so authorized by the Central Bank of Cuba.”

Reuters recently reported that the interest in digital currencies has soared among the tech-savvy in the country due to the difficulty in dollar use, stemming from stricter sanctions placed on Cuba by former US President Donald Trump.

According to Dr. Mrinalini Tankha, a professor of anthropology at Portland State University that has researched the Caribbean nation for ten years, making dollar transactions between the US and Cuba became difficult under the Trump administration.

With the proposed Bitcoin legalization, business practitioners would have the leeway to make US-Cuba transactions under more favorable conditions.

Key Bitcoin Levels to Watch — August 29

Following a dip to the lower-$46,000 area on Friday, Bitcoin has posted a healthy recovery to the $49,000 area. However, the benchmark cryptocurrency lacked the bullish stamina to continue on the upwards momentum, which set it into consolidation between $48,000 and $49,000.

BTCUSD – 4-Hour Chart

That said, BTC needs to hold the $48,000 – $47,000 area in the near term to preserve its overall upbeat bias. However, trading volume is significantly low at the moment, threatening more sideways momentum and bearish resurgence.

Meanwhile, our resistance levels are at $49,500, $50,500, and $51,400, and our key support levels are at $48,000, $47,000, and $46,000.

Total Market Capitalization: $2.06 trillion

Bitcoin Market Capitalization: $917.2 billion

Bitcoin Dominance: 43.7%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.