Crypto in Cuba faces various challenges as the government explores a state-backed cryptocurrency. After the launch of mobile internet in Cuba many people are turning to cryptocurrencies to avoid the sanctions placed by the United States.
Crypto in Cuba: Limited interaction
The country has had limited access to cryptocurrencies. This is because many of the leading cryptocurrency exchanges do not allow Cuban residents to access their website.
These include Binance that has barred 29 countries from using the exchange as well as Coinbase, Bittrex among many others. In research conducted by Mosaic.io, it was reported that nineteen of the forty-four cryptocurrency exchanges do not allow Cuban residents from using their services.
To top it all off the cryptocurrency market in Cuba is not regulated by any government organization. There is no legal framework that regulates the market, and hence, many people fear that any transaction may be considered as illegal.
State-backed Crypto in Cuba
In July 2019 the Cuban government announced that the administration was researching cryptocurrencies along with various other economic measures that would help in boosting the country’s economy. President Miguel Diaz-Canel has announced that these new measures would increase the income for one-fourth of Cuban citizens. Furthermore, Miguel stated that these measures would increase foreign investments in the country.
Cuban economy minister Alejandro Gil Fernandez added that the country was studying the use of cryptocurrencies in internal and international commercial transactions. Alejandro revealed that the government was working in collaboration with various academics. According to the state’s website, Cubadebate.cu, the Central Bank of Cuba is currently studying the potential benefits and the risks associated with cryptocurrencies.