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Cuba Turns to Crypto to Heal Its Sanction-Beaten Economy
Cuba is considering using cryptocurrencies in order to circumvent economic sanctions imposed by the US, Reuters reports.
There are no further details about Cuba’s crypto plans, but it will most likely follow in the footsteps of Venezuela, its long-term ally, by issuing its state-run coin.
Darryn PollockA tough response to socialism
Back in April, President Donald Trump imposed the harshest economic sanctions against the Communist government since the Cuban missile crisis.
According to national security adviser John Bolton, the new sanctions are supposed to put an end to the “glamorization” of socialism that was perpetuated by the Obama administration.
The US accused Cuba of supporting Nicolás Maduro, the president of Venezuela whose disastrous socialism agenda pushed the country’s economy to a boiling point.
Alex DovbnyaCrypto comes to the rescue
In order to get out of this predicament, Cuba is currently looking into cryptocurrencies.
We are studying the potential use of cryptocurrency ... in our national and international commercial transactions, and we are working on that together with academics,” Economy Minister Alejandro Gil Fernandez said.
As reported by U.Today, Maduro came up with a plan to issue an oil-pegged cryptocurrency dubbed “Petro” to weather hyperinflation, but it miserably failed.
Still, Bitcoin presents a great opportunity for Cubans to gain economic freedom, but the restriction of Internet access is a major obstacle.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Vladislav Sopov
Arman Shirinyan
Dan Burgin