Cuba, a country with a harsh business environment and a centrally planned, communist economy, is beginning to experience an increase in Bitcoin adoption. In a recent interview with Cointelegraph, Cuban entrepreneur and Bitcoin advocate Erich Garcia Cruz explains how some Cubans are using BTC as a tool to escape “The Matrix,” or their highly controlled economic system.
Cruz leads the remittance and money transfer services BitRemesas and QvaPay, both of which have been advocating for Bitcoin usage in Cuba since 2020. He says that while some Cubans use Bitcoin as a store of value, a means of exchange, or a remittance tool, ultimately, it’s about gaining independence from the state-controlled financial system.
It is important to note that the Cuban government has been showing signs of warming up to cryptocurrencies. Since 2021, private businesses have been legally allowed to accept cryptocurrencies like Bitcoin for goods and services. This change in policy opens up new opportunities for private businesses to benefit from the growing popularity of cryptocurrency.
However, the Cuban Peso has devalued by more than 800% since its inception, making it increasingly difficult for citizens to maintain their purchasing power. Despite the massive currency devaluation, Bitcoin continues to suffer from a bad reputation in Cuba, primarily due to the late introduction of the internet and the history of scams.
Cruz believes that the key to driving Bitcoin adoption in Cuba lies in educating the population and targeting private businesses, not just individuals. By providing information and resources for businesses to embrace and understand Bitcoin, the country could potentially benefit from a booming cryptocurrency market.
However, questions remain about the Cuban government’s stance on Bitcoin and whether they are ignorant of its potential or intentionally allowing its use as a means to bypass international sanctions. Regardless, the adoption of Bitcoin in Cuba is becoming increasingly important as citizens seek to preserve their wealth and improve their financial autonomy.
In conclusion, the adoption of Bitcoin in Cuba offers an escape from the country’s highly controlled economy and a means of preserving wealth against rapidly devaluing national currency. As the government continues to show signs of warming up to cryptocurrencies, the potential for further adoption and integration in the private business sector cannot be ignored. However, questions surrounding the Cuban government’s intentions and understanding of Bitcoin still remain unanswered.
Source: Cointelegraph
