- Cuba eyeing the use of cryptocurrency in national and international commercial transactions, aiming at decentralization as well
- This is part of the country’s measures to boost its economy amid crisis, exacerbated by US sanctions
Cuba’s Communist government has been studying the potential use of cryptocurrency as part of the measures to boost its economy amidst economic crises that worsened by US sanctions, reported Reuters on July 3rd.
“We are studying the potential use of cryptocurrency … in our national and international commercial transactions, and we are working on that together with academics,”
said Economy Minister Alejandro Gil Fernandez.
Cuba is facing an economic crisis due to a sharp decline in aid from its top ally Venezuela, lower exports and decade-old trade embargo under the US President Donald Trump.
Miguel Mario Díaz-Canel Bermúdez, President of Cuba said the government was working on the details of the implementation.
The new measures aim to increase national production and demand that will bolster growth and aid in rising income for a quarter of the population. However, many Cubans say the measures won’t be sufficient to breach the gap between the cost of living and salaries.
Gil Fernandez said the government was also aiming at decentralization to stimulate local production, improve state-run company performance, increase exports, and substitute imports.
He illustrated that financial service companies would be established to provide cash more quickly than the centralized planning system, in the face of opportunity.
Venezuela that is going through hyperinflation and political and economic crisis also launched its national cryptocurrency called petro last year. US sanctions-hit country has been seeing increasing use of cryptocurrencies, with Localbitcoins registering record trading volumes in Bitcoin.
Cryptocurrencies like Bitcoin’s borderless nature allows the citizens of these crisis-ridden countries to take control of their money and use BTC as a store of value.