A fresh report is alleging that the people of Cuba are increasingly turning towards cryptocurrencies. The reason? That crypto allows them to access the global economy without the restrictions imposed by American sanctions and the Cuban regime.
Cubans use crypto to access global economy
This report comes from Reuters, and talks about how citizens in communist-run Cuba now have greater opportunities than ever to access the global economy. Moreover, the key to giving the Cubans access to this is the concept of cryptocurrencies.
Specially, the report notes that the recent advent of mobile internet in Cuba is the reason behind this surge. As Cubans lack both access to international debit and credit cards, crypto presents an attractive alternative.
Using crypto allows these to both invest and make purchases online. According to Jason Sanchez, a native Cuban, crypto is now opening “new doors” for Cubans. Furthermore, Sanchez went on to note that he is now able to buy spare parts for his mobile phone repair store in Havana.
Although this presents a temporary solution for Cubans to sidestep restrictions, it is unclear exactly what the future will hold. For example, the Cuban government’s stance to crypto payments will likely have a significant impact on the crypto development in the nation.
How will this sit with Cuba’s government?
Moreover, the Cuban government is no stranger to the concept of cryptocurrencies. Earlier this week, another report emerged which noted that Cuba’s central bank is actively exploring the risks and benefits of digital currencies.
Consequently, it remains to see what permanent solution the Cuban government implements. For the moment, however, the possibilities brought by crypto usage in Cuba is an interesting example of the transformative power crypto holds.
Cuba even has a domestic crypto exchange called Fusyona. Although this exchange is comparatively simple, and touts the ability to send remittances to Cuba or invest in nine cryptos, it shows the impact of crypto in the Caribbean nation. According to Adrian Leon, the founder of Fusyona, crypto is critical in Cuba.
“For foreigners, cryptocurrencies is just another option. But for Cubans, it is a necessity and can be a solution to their exclusion from the global financial community.”
Crypto is changing the map for financial power, and brings the promise of greater economic democracy. Seeing Cubans turn to crypto after the domestic and international currency systems have failed them is merely one example of this . There will likely be others.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.