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Cuba Positively Looking Towards Cryptocurrency Against U.S. Sanctions

Cuba is actively looking for the measures to circumvent U.S. sanctions as a part of its strategic plan to deal with the economic crisis laid by U.S. President Donald Trump. Reuters reported on July 3rd.

Thanks to Satoshi Nakamoto to bring the leading digital currency Bitcoin (BTC) which is launched against Hyperinflation and to remove the need of middlemen like banks and financial institutions, who act as a trusted third party entity which in reality not performing their duties in a legitimate way. The unforgettable example is the case of global financial crisis 2007-2008 and the involvement of an Investment bank Lehman Brothers which ultimately followed by a global economic downturn, the Great Recession.

At present, there are various countries who are suffering from the hyperinflation, Cuba and Venezuela are one among many and are highly positive to curb the unbearable issues and to dodge the U.S. sanctions due to which both the economies are suffering.

Reportedly, the Communist government of Cuba is in the process of boosting its present economic state of affairs which has suffered more drastically because of U.S. sanctions and now looking towards the potential use of cryptocurrency as a savior.

As per the information, President Miguel Diaz-Canel along with his government representatives presented their views on state-run TV. Diaz-Canel, who took the presidency in April 2018- the Soviet-style commanding economy which was started by the previous president, Raul Castro, now as a part of its implementation plan, he wants to raise money for over a quarter of the population that would further help the northern Caribbean Island to deepen the market reforms

The U.S. sanctions have targeted the tourism and foreign investment options of Cuba. So, in order to bypass these restrictions and unacceptable laws, Cuba wants to raise the national production level along with the demand while boosting its economic power against the aggravated financial crisis.

Further, Economy Minister Alejandro Gil Fernandez cited:

 “Cuba government is studying the potential use of cryptocurrency…focusing on the country’s national and international commercial transactions”

where the academics are also playing an important role in the major understanding of the concept.

The latest information is placing positive hope among the people towards cryptocurrency. As per the displayed words, the package which the government has proposed would ostensibly help the employees from public administration in terms of pension and wages, social services and state-run media that possibly has the potential effect to double the average monthly wages. The amount can be equal to $44.5 that was earlier seen and struggling for approximately $25.

However, the report also mentions the skeptical viewpoints of Cuba citizens who believe that the measure probably won’t be enough to penetrate the gap between “salaries and the cost of living.” But if there is a “stronghold on inflation, it can boost the country’s purchasing power.”

Cuba Follow The Route Of Venezuela

Allegedly, Cuba has undergone a major pressure both from financial and political crises and after seeing the conditions of Venezuela, the government has decided to take actions in order to safeguard its economy. Cuba is now following the route of Venezuela- the Bolivarian Republic of Venezuela from the northern coast of South America which itself launched the Petro its native cryptocurrency in August 2018, to skirt the effects of U.S. sanctions.

However, Petro hasn’t yet received the support from the international front in spite of making huge promises. In fact, despite of the major announcement that Venezuela would take petro to the Organization of the Petroleum Exporting Countries (OPEC) in 2019, as the “main digital currency backed by oil” i.e., the Venezuelan government wants to make Petro as a means for paying oil globally to boost up its economic strength, which is downtrodden by the United States- a federal republic of 50 states and the world’s greatest economic power, measured in terms of gross domestic product (GDP).

Image by WikimediaImages from Pixabay

Tags: Cuba, Cryptocurrency, Petro, Venezuela, Organization of the Petroleum Exporting Countries (OPEC), United States, Satoshi Nakamoto, Bitcoin (BTC), Hyperinflation.

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