Cuba Uses Crypto to Evade Sanctions

Last summer, many Cubans were without an Internet connection due to censorship attempts. In March, Cubans faced further disruption after an accidental fiber-optic breach in the capital, Havana, with mobile internet in Cuba only being set up three years ago. However, it seems that the provision of a mobile Internet connection would have been the turning point in history when the population finally got a grip on their freedom.

However, the U.S. has imposed tough sanctions, which are a heavy burden on many citizens of Cuba. This is one reason why an independent monetary technology like blockchain is the ideal solution to your problems.

A local business owner, Nelson Rodriguez, explained in a recent interview with NBC that there is a conflict between two opposing perspectives. This has increased the use of crypto in the country. The population, like Rodriguez, believes in crypto, referring to the idea of sovereignty, decentralization and the freedom to store and trade funds. There is no need to fear that the local government will introduce vague taxes or simply ban the technology.

However, PayPal, Revolut, Zelle and other popular payment systems and global electronic wallets are banned in Cuba by US sanctions.

The Cuban government has recently started to create a legal framework for crypto service providers and transactions. Anyone who wants to use cryptocurrencies must first purchase a license from the Central Bank in Havana from April 2022.

The bank examines socio-economic and legal nuances, and then approves or denies a one-year license. In this way, the government hopes to revive international trade and allow citizens to move more freely through the use of crypto-wallets than through the use of credit cards and electronic payment systems.