When a country faces a severe economic crisis or living in a long-lasting political turmoil, cryptocurrencies are often discussed as an alternative to deal with the tough times. Although cryptos are not an unfamiliar issue in Cuba, the Communist Party of Cuba (PCC) has been recently showing interest in digital assets to face the economic crisis.
Party Delegates Want to Assess Feasibility of Cryptos in the ‘Current Economic Conditions’
According to Directorio Cubano, some members of the PCC suggested that the country should make its inception into the crypto sphere as “an alternative to face the current economic crisis” that the island is living.
Cuba is facing an economic crisis due to international sanctions imposed several years ago, and the pandemic has hit the country on many fronts, specifically the tourism industry.
During the 8th congress of the Communist Party of Cuba, the delegates asked to include cryptocurrencies as part of the update of their “guidelines of the economic and social policy of the Party and the Revolution.”
In fact, Cubadebate, a Cuba-based media outlet, mentioned that during the congress in Havana, it was proposed to “advance in the study of cryptocurrencies in the economy’s current conditions.”
However, the PCC didn’t provide further details on the proposal of including cryptos. Still, Directorio Cubano hinted that the Communist Party of Cuba could be following the steps of the Venezuelan President Nicolás Maduro of creating a state-owned token, such as petro (PTR).
Covid-19 and US Sanctions Boosted Crypto Usage in Cuba
As of press time, the Cuban government – currently led by Miguel Díaz-Canel – has not shown interest in making cryptocurrencies a state affair.
Overall, Cubans have been facing strict restrictions in the last few years to send remittances due to new U.S. government measures enacted, forcing companies like Western Union to close their operations on the island.
In 2020, reports suggested a growing use of cryptocurrencies by some Cuban residents, as cryptos were being used to pay for utilities and for cross-border payments.
Furthermore, the restrictions on human movement imposed to curb the spread of Covid-19 appears to have sparked an increase in the usage of cryptocurrencies by Cuban expatriates when sending money.
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