Cryptocurrencies in Cuba
Hello everyone! 🦁
In this post, I would like to share a topic that has gained a lot of popularity among Cubans and has a large number of followers. I am referring to cryptocurrencies.
Cryptocurrencies are still a novel term for some, as they are a recent phenomenon. However, since their creation in 2009 with Bitcoin, they have undergone an accelerated evolution. Technological development has been fundamental in their progress, which has allowed for the constant improvement of their technology. Currently, there are thousands of digital currencies available on the market.
Cryptocurrencies are a form of digital money that has no physical representation and are not backed by gold or banking institutions. Therefore, they are mostly not controlled by any country or issuing bank, which gives them a unique financial independence.
When I first heard the term "cryptocurrency" I found it very curious and did not fully understand it. How could there be a currency that had no physical form and existed only in digital space? It was very strange to me. Over time, I started to hear more and more about Bitcoin (BTC), but I mainly associated it with the world of hackers and the dark web.
My approach to the world of digital currencies started two years ago, looking for a different option to improve my economy. The economic crisis we are going through and the devaluation of our currency led me to look for variants, and cryptos presented themselves as a viable alternative.I had to learn many new things and familiarise myself with unfamiliar terms and concepts. I also had to learn how to use digital wallets and Exchange. Finding suitable platforms for exchanges was a challenge, especially because in Cuba many websites and payment gateways are blocked, which limits access to exchange sites.
In this regard, I would like to mention two options that have been very useful for me. The first is @qvapay, a well-known payment gateway used by Cubans to exchange cryptocurrencies, which also has a P2P network that makes transactions even easier. The second option is @hiveremesas, a crypto-fiat exchange service focused on Cubans, which offers a simple and fast way to exchange Hive tokens.
In this way, I discovered that my preconceived ideas about digital assets were actually the opposite of what I thought, and that they were actually a great advantage.
Today, the terms "digital assets" and "cryptocurrencies" are no longer unfamiliar to Cubans, and more and more people are using this technology. In Cuba, the use of cryptocurrencies has experienced positive growth in recent years. This increase in their use was favoured in the Covid19 pandemic, since in the midst of the outbreak important sectors of the Cuban economy, such as tourism and retail trade, were severely affected, and many businesses had to close, generating a significant loss of income for many people. In this context, cryptocurrencies emerged as an attractive option for those seeking new sources of income and additional financial opportunities.
The use of digital assets allows Cubans to access goods that are not normally available
In Cuba, cryptocurrencies are used for various purposes, such as payment for services rendered, topping up mobile phone credit, receiving remittances, and buying products online for items that cannot be found in shops due to shortages in the country. They are also an advantage for self-employed businesses, as they allow them to acquire the inputs, parts and pieces needed in their production of goods and services. It is a quick way of doing business, shortening time and distances. For some people it is even an investment and a way to generate profits in the well-known trading (example of this, my dear friend @nanixxx).
Another example of the benefit of digital currencies in Cuba was their use to make donations to the province of Matanzas during the Covi19 pandemic when a health outbreak broke out in the city and the health system was overwhelmed. The money raised through donations made in these virtual currencies was used to purchase medical supplies, medicines and food that were sent to the province. More recently, they served the same cause in the province of Pinar del Rio, after Hurricane Ian, where thousands of people lost their homes and the city was cut off from communication and electricity for several days. This was an great initiative that emerged from within the Cuban community in Hive.
The Cuban government and the adoption of cryptocurrencies
In 2021, Cuba took an important step by announcing through the Central Bank that it would recognise cryptocurrencies as a method of payment in commercial transactions, and that it would authorise the use of cryptocurrency services and platforms. This would be done by granting licences to natural or legal persons wishing to operate as digital asset service providers in transactions carried out in Cuban territory.
I would like to see the use of cryptocurrencies continue to be encouraged in Cuba, and that more and more businesses and people implement their use effectively. In my opinion, promoting the employment of cryptocurrencies could be very beneficial for the personal economy of Cubans since, being decentralised and not controlled currencies, they are not subject to regulations and this allows circumventing the economic and trade sanctions imposed by the United States on the island. It could also be an additional attraction for foreign investment. I believe that Cuba needs to study the best way to implement in the future a more widespread use of cryptocurrencies in the interest of its economic development.
Digital currencies have gained popularity in recent years of restrictions and economic challenges in the country. As such, their implementation has the potential to provide a solution to these problems and help improve the financial lives of Cubans. However, it is important to keep in mind that the use of digital assets also carries risks, so each new move should be carefully considered. I am convinced that cryptocurrencies will have an important place not only in the global economy, but also in our Cuban economy.
So far my publication on this interesting topic. I hope it has been of interest to you.
See you next time! 💰💰💰
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