Cuba Considers Using Crypto to Subvert U.S Sanctions

Wilfred Michael 

Wilfred Michael

News reporter

03 July 2019,
18:07
Cuba Considers Using Crypto to Subvert U.S Sanctions

Caribbean country, Cuba, has become the latest to consider the adoption of a cryptocurrency to help the nation skirt sanctions imposed on it by the United States Government.

Reutersreported the development on July 3, citing comments made by both Cuba President, Miguel Diaz-Canel and economy minister, Alejandro Gil Fernandez during a public address on National TV.

The subject under discussion, per the report was measures that Cuba would take to save its failing economy after close allies, Venezuela fell into an even more profound crisis. Before now, Cuba usually received aids from their South American counterparts who somehow are also facing U.S sanctions.

Among the strategies suggested by the political official on National TV to solve Cuba’s situation is the adoption of a cryptocurrency.

Economy Minister, Alejandro Gil Fernandez, reportedly said,

“We are studying the potential use of cryptocurrency ... in our national and international commercial transactions, and we are working on that together with academics.”

President Miguel further highlighted what the country’s goal at this point is — to raise income for around a quarter of the population and deepen market reforms. That would, in turn, increase national production and growth amid the U.S sanctions according to the national leader.

What is unclear at this point, however, is whether Cuba’s delving into cryptocurrency would result in the country creating its cryptocurrency, in the same way, that Venezuela did and never met success, at least so far.

The statement “studying the potential use of cryptocurrency” could also mean that the country eventually adopts Bitcoin or any other popular cryptocurrency as a unit of payment for their foreign transactions.

Either way, adopting any ‘cryptocurrency’ looks like one of the proven approaches for Cuba to subvert the U.S sanctions, since these transactions can be anonymous and not denominated in any fiat currency. In the past, we revealed that Iran was also planning to create a cryptocurrency for the same purpose.

 

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