The nation of Cuba has formally announced plans to utilize cryptocurrency on an international scale, and one resident couldn’t be happier. John McAfee, who is currently hiding out somewhere in Havana, praised the decision by the Cuban government and offered his help.
McAfee might not care what the United States thinks, but many cryptocurrency advocates may have concerns. Cuba is probably only seeking to utilize digital currency as a means of evading U.S. sanctions. Sanctioned nations like Venezuela, Russia, and Iran have all floated the idea of using crypto as a means of trading internationally.
Venezuela has gone the furthest with its “Petro,” but it was not successful. North Korea has also been using blockchain technology. Rather than launch a coin, Kim Jong Un has preferred to go the route of mining and theft to line his coffers.
According to a report by Reuters, Economy Minister Alejandro Gil Fernandez said the following regarding Cuba’s plan to utilize crypto:
“We are studying the potential use of cryptocurrency…in our national and international commercial transactions, and we are working on that together with academics.”
If you are the Winklevoss twins, pushing hard for regulatory acceptance, Cuba’s announcement will not be great news. While John McAfee is overjoyed at the prospect of a crypto project that will undermine U.S. regulations, every blacklisted nation that makes use of digital currency is going to raise the probability of draconian sanctions being implemented internationally. This is precisely the outcome that the Winklevosses want to avoid.
If the U.S. government is indeed after McAfee for tax evasion, they are probably not overjoyed to see him using Cuba as a hideout. Imagine how irate they will be if he is also actively working to undermine U.S. sanctions there. John doesn’t seem too bothered, however, as he has finally got his hands on some cigars.
The famous argument from George Soros that bitcoin is used to prop up dictators will no doubt re-emerge among crypto skeptics. There is a bullish take here, however. Clearly, Cuba does believe there will be a benefit nationally as well as internationally. If the tiny nation can give its own economy a boost, it might inspire other struggling countries to follow suit.
It remains unclear what form of cryptocurrency might emerge from Cuba’s research. What is clear is that John McAfee would love to simultaneously help develop “Cuba Coin” while thumbing his nose at the Federal Government.
Last modified: May 20, 2020 1:04 PM UTC