To avoid sanctions put on it by the US, the government of Cuba is considering introducing cryptocurrencies to the country. It is supposed to help increase the total state capital.
How will cryptocurrencies help Cuba?
The president of the country, Miguel Diaz-Canel,
has given a special TV address for this purpose. Such a reform of the financial system in Cuba would allow, in his opinion, to pay for all necessary reforms planned for the country.
Cuba significantly suffered from the financial crisis in Venezuela
as this particular country has been an essential source of help so far.
We do research on the possibilities of using cryptocurrencies. Both in domestic and international finances, there is potential in using the cryptocurrencies. We are working on this topic with the best scientists in the country.
- said Cuban economy minister Alejandro Gil Fernandez
, quoted by the Reuters agency.
It is not known if Cuba plans to launch its own token or use existing ones, e.g. Bitcoin. Gil Fernandez also highlighted that reforms supported by cryptocurrencies are very much needed in Cuba. He pointed out that they would allow a certain level of decentralization in the local economy, which for many years has had a centrally controlled character.
Problems of other countries
The aforementioned Venezuela has released its own cryptocurrency, Petro, which was also a way to alleviate US sanctions. Nevertheless, it did not arouse great interest outside the country.
A similar problem had Iran
, which continually goes into trade disputes with the United States. In addition, it blocked access to electricity for miners of cryptocurrencies due to its huge consumption.