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Communist Cuba Hops Aboard the Crypto Hype Train

Last Updated March 4, 2021 2:37 PM
P. H. Madore
Last Updated March 4, 2021 2:37 PM

Cuba is reportedly  considering developing its own cryptocurrency, potentially following in the footsteps of Venezuela. Between enforced sanctions under Donald Trump and decreased aid from allies, Cuba is in trouble.

Rebel Regimes and Crypto: Fast Friends

venezuela nicolas maduro petro cryptocurrency
Cuba would join nearby Venezuela in launching its own cryptocurrency to skirt US sanctions. | Source: AP Photo/Ariana Cubillos

A new Cuban economic package calls on the country to consider the use of cryptocurrency to facilitate trade and tourism, as well as moderately increase pensions and wages for public sector employees and retirees.

It seems a tide of cryptocurrency is sweeping the world of countries under US sanctions. Iran, Venezuela, and now Cuba could soon all have their own blockchains, and they may utilize them to trade amongst each other – and more.

The decentralized, censorship-resistant nature of the blockchain appeals to countries which have run into problems with the international banking cartel.

Many Cubans interviewed by Reuters reportedly don’t think the economic package will be enough to save the country, which has been in decline.

Countries developing their own cryptocurrencies and blockchains seems a logical next step in the evolution of the blockchain. That certain kinds of countries, including Russia and Iran, are first to the game is as disappointing as it is unsurprising.

Cuba’s Crypto Gambit

American embargoes on Cuba go back to the 1960s, and may eventually end. The tiny neighbor to the south would thrive with US trade relations in place, but it must instead without access to the world’s largest market.

Imagine countries like Cuba being able to issue cryptocurrency-backed bonds using blockchain technology. Private investors around the world might be able to use crypto assets like Monero to invest in the country, who could then also play host to exchanges, casinos, and so forth.

The blockchain industry will be big enough to raise the prospects for several economies. Countries like Cuba, who are motivated to stimulate new industries, might be the first beneficiaries of the growing industry.