According to an insightful report in Cointelegraph Magazine, the crypto community in Havana, Cuba has been turning to cryptocurrencies, notably Bitcoin due to the increasing insignificance of the national currency, the Cuban peso. The team behind the local Bitcoin organization, Cuba Bitcoin, believe that Bitcoin might not have been created specifically for Cubans, however, it has become incredibly convenient for them.
A devaluation of the Cuban peso coupled with intense levels of inflation has resulted in even the rich and poor burdened with carrying enormous bags of cash. An analysis shows that even if someone had bought Bitcoin at the peak of the 2021 bull run, their wealth would still be diminished greatly if it were in Cuban pesos. Meanwhile, while Bitcoin’s value declined by 80% to its bear market low, it has since recovered by a full 100%, whereas the peso has faced devaluation by 90%.
Consequently, Bitcoin is becoming increasingly eminent in the Cuban economic landscape. As of today, thousands of crypto enthusiasts and advocates form the growing Bitcoin community in Cuba. Yet despite the increasing prominence of Bitcoin, Cubans, surprisingly, do not have easy access to cryptocurrency on-ramps due to persistent governmental restrictions on their access to international digital platforms.
Despite these constraints, Cubans have developed resourceful ways to buy and sell Bitcoin, often through peer-to-peer transactions on messaging applications like Telegram and WhatsApp or at in-person meetups. While this process may not be beginner-friendly, it offers a safeguard against potential losses that may occur through custodial platforms, thereby offering a layer of added security.
One cryptocurrency advocate interviewed by Cointelegraph Magazine noted that saving even minimal amounts in Bitcoin could be meaningful for the average Cuban. Taking into account the probability that the Cuban peso may not exist in 10 years while Bitcoin likely will, it is becoming apparent that for many Cubans, Bitcoin offers a financially secure and more stable future.
Despite the potential that Bitcoin possesses in becoming a game changer for the Cuban economy, serious governmental and infrastructural hindrances, including underdeveloped internet infrastructure and pervasive governmental censorship, still hamper its full adoption. Chapters from Cuba’s Bitcoin story, however, reiterate that in a country where even a taxi driver earns more than a highly-qualified atomic engineer, the borderless, independent quality of Bitcoin offers a sense of elusive financial freedom to its adopters.
Despite the skepticism regarding cryptocurrencies, a progressive crowd of Cubans view Bitcoin as a financial tool that could possibly open up the Cuban economy to the international financial world. Therefore, for an economy which has been financially crippled for generations, the promise of Bitcoin stirs up hope for a more economically secure future.
Source: Cointelegraph
