As a result of U.S. sanctions, the island country has grown particularly interested in cryptocurrency.
Due to U.S. sanctions, many Cubans are increasingly adopting bitcoins as an alternate method of payment. Many Cubans are already exploiting digital assets, in large part because mobile internet first arrived on the island in 2013.
One of Nelson Rodriguez’s Cuban cafes now takes both Bitcoin and Ethereum for payment. According to him, he adheres to the “concept” of cryptography, which is typically linked to free-market ideas, property rights, global connectivity, and resistance to censorship.
The Communist Party in power in Cuba prevents its residents from using widely recognised credit or debit cards throughout the world because of U.S. sanctions. In this location, it is illegal to use PayPal, Revolut, or Zelle.
Coins, on the other hand: Virtual asset service providers will soon be able to get licences from the Cuban central bank, which said it will begin granting them this month. It had been claimed that the Cuban President had been looking at the legality of cryptocurrency for payment eight months before.
In Rodriguez’s view, digital currencies have eliminated the need for payment service providers, thus their prohibitions are insignificant.
Given that foreign banks may be penalised hundreds of millions of dollars if they are discovered to be interacting with the technology, it is revolutionary for the area. Because of this, even if Cuba’s government has the funds necessary for a deal, paying payments remains a huge difficulty.
An Economist from University College London, Dr. Emily Morris said it is no surprise that the Cuban public is turning to crypto. It would be of interest to her if transactions could be made between two parties without the need for a bank, she said.
A Cuban singer who resorted to NFTs when his company collapsed due to Covid 19 epidemic limitations was also profiled by NBC. In order to make money, he is now selling his music, films, and images online via a digital chain.
Is It a Sanctions Killer?
Cryptocurrency has been extensively studied by governments since the United States imposed sanctions on Russia in February. However, Chainalysis says that this is not a realistic option for nations that don’t adhere to the Cuban government’s regulations.
Changpeng Zhao, chief executive officer of Binance, has also indicated that the idea of utilising cryptocurrency for sanctions is a sham. In his opinion, “Crypto is too easily traceable.” It is becoming more difficult for governments throughout the globe to avoid being tracked by crypto.
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