Cubans turn to bitcoin to evade US sanctions

Cubans turn to bitcoin to evade US sanctions

Cuba, a country that seems to have shut down in time due to US sanctions, is discovering that Bitcoin can help its economy. More specifically, an NBC report points out that about 100,000 people already use Bitcoin and cryptocurrencies.

‘We don’t need you anymore. That’s the way of thinking with all these services [financeiros]† Well, you’re not offering me any services, never mind. I will use cryptocurrencies to grow my business.”Cuban entrepreneur Erich Garcia reported to NBC.

One of the reasons for this growth is the expansion of mobile internet in Cuba in recent years. So now Cubans have everything they need to use Bitcoin: a mobile phone with internet access.

Bitcoin’s Need for Cuba

Currently, one of the most important world affairs is the war between Russia and Ukraine. As a result, many countries are launching sanctions against Russia, which as far as he is concerned is trying to understand whether Bitcoin can be a safe haven to save its economy.

Therefore, the embargoes on Cuba, in place since the 1960s, could have had less of an impact on the country if Bitcoin had already existed at the time. After all, the NBC report highlights that while the country has money, the biggest problem has to do with payment providers.

“With the embargo stricter than ever, international banks dealing with the island have been fined. So even if Cubans have the money to buy food, vehicles and medicine, paying is the real headache.”

Going further, the report cites that the Central Bank of Cuba has issued new rules for cryptocurrencies. So while Cubans need a license to deal with cryptocurrencies, it seems Cuba is discovering that Bitcoin can help them.

However, the US is expected to try to bridge this gap, as it is doing with Russia. However, many Cubans cannot, but already benefit from, a decentralized and anti-censorship monetary system.

Source: Live Coins