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Many Cubans are now using cryptocurrencies as an alternative means of exchange due to limitations imposed by US sanctions on the country\u2019s traditional payment rails. Over 100,000 Cubans are reportedly using digital assets, largely thanks to mobile internet reaching the country just three years ago.\u00a0<\/span><\/p>\n NBC News recently <\/span>interviewed<\/span><\/a> Nelson Rodriguez \u2013 a Cuban cafe owner who now accepts both Bitcoin and Ethereum for payments. He said he believes in the \u201cphilosophy\u201d of crypto \u2013 often associated with free-market ideals, property rights, borderlessness, and censorship resistance.\u00a0<\/span><\/p>\n Cuba, by contrast, is governed by a Communist Party, and citizens are unable to use internationally accepted debit and credit cards due to American sanctions. Paypal, Revolut, and Zelle are all banned in the region.\u00a0<\/span><\/p>\n But not cryptocurrency: The Cuban central bank announced that it would begin <\/span>issuing licenses<\/span><\/a> to virtual asset service providers this month. Eight months prior, the Cuban President was reportedly <\/span>examining<\/span><\/a> the legalization of cryptocurrencies for payments.\u00a0<\/span><\/p>\n As Rodriguez explained, digital currencies mean that payment service providers are no longer necessary for commerce, leaving their bans negligible.\u00a0<\/span><\/p>\n The technology is groundbreaking for the region, given that international banks found dealing with it can be fined hundreds of millions of dollars. As such, even if the Cuban government has the money required for a trade, making payments is still an immense challenge.<\/span><\/p>\n Dr. Emily Morris, an Economist from University College London, said it\u2019s hardly surprising to see the Cuban population turning to crypto. \u201cIf you can do transactions directly between two parties which don\u2019t have to go through a bank, then that would be of interest,\u201d she stated.<\/span><\/p>\n NBC also interviewed Ernesto Cisneros, a Cuban musician who turned to NFTs after his business fell apart due to Covid 19 pandemic restrictions. He now stores his music, videos, and photos on-chain and sells them online for money.<\/span><\/p>\n Cryptocurrency\u2019s role in bypassing sanctions has been examined thoroughly by governments ever since the US sanctioned Russia in February. Though small Cuban coffee shops may be able to work around these restrictions using crypto, Chainalysis <\/span>claims<\/span><\/a> that this isn\u2019t viable for alternative national governments.\u00a0<\/span><\/p>\n Binance CEO Changpeng Zhao has also <\/span>stated<\/span><\/a> that using crypto for sanctions is a myth. \u201cCrypto is too traceable,\u201d he said. \u201cThe governments around the world are increasingly very good at tracking crypto transactions.\u201d<\/span><\/p>\n PrimeXBT Special Offer: Use this link<\/a> to register & enter POTATO50 code to receive up to $7,000 on your deposits.<\/b><\/p>\n<\/div>\n<\/div>\n <\/p><\/div>\nCuba\u2019s Crypto Economy<\/h2>\n
A Killer of Sanctions?<\/h2>\n
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