The risks of investing in cryptocurrencies have been highlighted by the Cuban National Bank (BCC). The bank, which is the country’s central financial institution, has warned of the high risk of investment in virtual currency and crypto-related financial schemes. The warning comes as the bank noted a significant rise in the number of schemes involving virtual currency investment and other crypto-related financial instruments. The bank also warned about the risks associated with virtual currency mining operations, which tend to generate high amounts of heat and noise, resulting in a negative impact on the surrounding environment. The bank said that crypto mining operations impact the environment due to the excessive consumption of electricity and the release of heat and noise, which affects the surrounding area. The
While the island nation of Cuba has long been known for its cigars, rum, and sorrel, it’s only recently that Cubans have started dabbling in a new “hobby”: cryptocurrency. While this new wave of “hobby” isn’t as respected as the old hobby of drinking, it is quickly gathering steam, and is showing no signs of slowing down. In fact, the Cuban central bank is so concerned about “the number of crypto-related Ponzi schemes that have emerged” that it’s threatening to prosecute anyone who tries to profit off crypto.
The Cuban central bank has issued a statement warning consumers that cryptocurrencies have no legal protection in the country, and that a large number of people have been tricked into crypto-related investment scams. The central bank also advised consumers that virtual currencies are not issued by any government or centralized organization, and that they have no legal tender in the country.. Read more about new cryptocurrency and let us know what you think. 
There have been some interesting developments in Cuba in recent months regarding the introduction of digital currency in the country, but the road to it is still under construction. The country’s central bank recently warned of an increase in cryptocurrency fraud on the island.
Suspected cryptocurrencies referred to in warning
According to an advisory from the Banco Central de Cuba, citizens should be wary of Ponzi schemes that hide behind legitimate investments in digital assets. These machinations are misleading people across the country, which is suffering from an ongoing economic crisis. Central Bank officials have also revealed the names of a number of alleged scammers operating in Cuba without a license, including Mind Capital, Mirror Trading, Arbistar, Trust Investing, Qubit Life/Qubit Tech, X-Toro and others. Arbistar is being targeted by Spanish authorities as the shell company is accused of a multi-million dollar cryptocurrency fraud that has bankrupted thousands of people in several countries. The Banco Central de Cuba commented on the situation of the companies marked in red: These organizations excel at offering the opportunity to make sophisticated investments through deceptive advertising on social media and other platforms, or even by using crypto assets as a new source to pique consumer interest. These ads usually promise a way to make a quick and easy profit with no apparent risk.
The Cuban government does not support existing cryptographic projects
Moreover, the central bank stresses that the Cuban government does not currently approve any virtual currency projects in the country and even advises the public not to engage in these types of transactions. Despite a warning from Cuba’s central bank, the island’s president, Miguel Diaz-Canel, has raised the possibility of including cryptocurrencies in his plan for the ease of the national economy. As Bitcoin.com News reported last week, Diaz-Canel wants to explore the feasibility of these decentralized technologies and their impact on the country. However, at the time of publication it had not confirmed whether it had decided to launch digital assets or create a central bank digital currency (CBDC). What do you think of the Cuban Central Bank’s warning? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The central bank of Cuba has issued a statement warning citizens that a growing number of fraudulent investment schemes, especially those promising abnormally high monthly returns, are using cryptocurrency to swindle people out of their money. In the statement published today, the bank’s board of directors said that “any investment that promises returns that are too good to be true” should be avoided and that “investors should also not listen to anybody who promises guaranteed returns and assures that there is no risk involved.”. Read more about best crypto wallet and let us know what you think.
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