When a country is facing a severe economic crisis or living in a longstanding political turmoil, cryptocurrencies are often discussed as an alternative to face the tough times. While cryptos are not an unknown issue in Cuba, the Communist Party of Cuba (PCC) has recently shown interest in digital assets to help deal with the economic crisis.
Party delegates want to assess the feasibility of cryptos in the ‘current economic conditions’
According to Directorio Cubano, some members of the PCC suggested that the country should enter the crypto sphere as “an alternative to the current economic crisis” that the island is experiencing.
Cuba is facing an economic crisis due to international sanctions imposed several years ago, and the pandemic has affected the country on many fronts, especially in the tourism industry.
At the 8th Congress of the Communist Party of Cuba, delegates called for the inclusion of cryptocurrencies as part of the update of their “Guidelines for the Economic and Social Policy of the Party and the Revolution.”
Cubadebate, a Cuba-based media outlet, even said it proposed at the Havana Congress to “make progress in the study of cryptocurrencies in the current conditions of the economy.”
However, the PCC has not provided further details on the proposal to include cryptos. Still, Directorio Cubano hinted that the Communist Party of Cuba could follow Venezuelan President Nicolás Maduro’s steps to create a state-owned company such as petro (PTR).
Covid-19 and US sanctions bolstered cryptocurrency use in Cuba
As of the time of writing, the Cuban government – currently led by Miguel Díaz-Canel – has shown no interest in making cryptocurrencies a state affair.
Overall, Cubans have faced strict restrictions on transferring money in recent years as a result of new measures from the US government, forcing companies such as Western Union to cease operations on the island.
In 2020, reports suggested increased use of cryptocurrencies by some Cuban residents as cryptos were used to pay for utilities and cross-border payments.
In addition, the restrictions on human traffic imposed to curb the spread of Covid-19 seem to have led to an increase in the use of cryptocurrencies by Cuban expats when sending money.
What is your take on the Communist Party of Cuba’s interest in cryptos? Let us know in the comments below.
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