Cuba Might Turn To Crypto In The Face Of Increased US Sanctions

More and more countries are integrating cryptocurrencies as a legitimate source into their economic system, and it seems that Cuba is likely to follow Venezuela’s footsteps and is now considering cryptocurrencies as a potential solution to fight against the financial issues alleviated by US sanctions.

Cuba is going through a financial crisis that is heightened with the implication US sanctions. Cuba’s ally Venezuela has also witnessed a worsening economic situation leading to hyperinflation.

Venezuela had introduced its native-cryptocurrency ‘petro’ as an aid against US sanctions. Under Donald Trump’s regime, the US is imposing high tariffs, which have led to lower exports for Cuba, and assistance from ally-Venezuela is declining.

Cuba Could Launch Own Crypto to Avoid U.S. Sanctions. The country is reportedly working on the development of its cryptocurrency in an attempt to avoid U.S. sanctions. Cuba is studying cryptocurrency as part of economic crisis measures. Cuba’s Communist government said on Tuesday that it was examining the potential use of cryptocurrency as part of a series of steps to boost its economy amid a deepening crisis exacerbated by the U.S.

Under such steering circumstances, the country’s communist government announced on state-run TV that it would potentially use crypto as part of a package aimed to raise income for around a quarter of the population and also include market reforms.

Cryptocurrencies help in carrying out financial operations anonymously and thus could serve capital controls. The final aim of the communist party is to raise national production and demand in order to support growth as US sanctions target tourism and foreign investment.

Economy Minister Alejandro Gil Fernande says,

“We are studying the potential use of cryptocurrency … in our national and international commercial transactions, and we are working on that together with academics.”