A free Cuba? – A report from NBC News indicates that more than 100,000 Cubans use bitcoin and other cryptocurrencies. Cryptocurrency adoption has been largely driven by mobile internet access. Indeed, the Cubans discovered it only 3 years ago. The Need for Sovereign Monetary Technology stems from sanctions imposed on Cuba. Indeed, they prevent the use of international monetary standards and create difficult conditions.
Bitcoin and cryptos in the face of sanctions in Cuba
There would be 100,000 Cubans who currently use cryptocurrencies. This mass adoption is taking place largely due to the introduction of mobile internet access. Indeed, it was only provided to Cubans three years ago. NBC News notably interviewed a cafe owner named Nelson Rodriguez. The fact that the latter accepts Bitcoin and other cryptocurrencies in his establishment challenged them.
Explaining what prompted him to accept this new payment method, he said: “I love crypto because I believe in philosophy. »
The philosophy that Nelson Rodriguez is probably referring to is the idea that money should be sovereign. This means that it should belong to those who earned it. As well, silver should not intentionally devalue over time. These particular ideals clashed with the local government of Cuba. The international sanctions imposed by the United States on Cuba have also been a real obstacle.
Cubans cannot use PayPal, Revolut, Zelle and many other forms of international payment services. This is because the sanctions prohibit these services. Many institutions such as JP Morgan and Deutsche Bank have been condemned to multi-million dollar fines. Indeed, they would have provided services to Cubans, going against the heavy restrictions imposed by the USA.
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Cubans take charge of their money
On April 27, 2022, Reuters reported that Cuba approved cryptocurrency service providers. Some will soon get a license from the central bank. A teacher at Pontificia Universidad Javeriana Cali in Colombia, Pavel Vidal, thinks the central bank knows what it is doing.
“If the central bank creates a favorable legal framework for cryptocurrencies, it is because it has already decided that it can bring benefits to the country. »
Pavel Vidal, former Cuban central bank economist
Also, Alex Gladstein from the Human Rights Foundation, wrote an interesting article. It deals with the many challenges that the Cuban people have faced. While writing said article, he interviewed a son of Cuban exiles. He also called on the executive director of the Cuba Study Group, Ricardo Herrero. They discussed together the economic impact of the sanctions on the Cuban people.
Ricardo Herrero described the embargo imposed on Cuba as “the most rigid and extensive sanctions regime against any company on the planet”.
The country is following a similar path to El Salvador and the central african republic by embracing bitcoin in the midst of the escalation of US sanctions and the economic impact of COVID-19. Virtual currencies put the financial sovereignty of many Cubans into perspective. Besides, the country is considering a legal framework for Bitcoin and cryptocurrencies.
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