A recent report from the National Broadcasting Company (NBC) suggests that more than 100k Cubans are bypassing financial sanctions using crypto. This is happening as Cuba faces financial sanctions placed by the United States. A lot of payment methods are restricted in the country, which makes digital currencies like BTC their only option.
Crypto helps Cubans bypass US sanctions
Bitcoin has become a popular method of transaction among the Cubans after the sanctions placed by the US. Stores and cafes in the nation are also accepting BTC and ETH as they believe in the philosophy behind crypto assets. More importantly, crypto has given them the option to be independent of any other nation for payment methods.
Popular payment companies like Paypal are banned in the country, and the penetration of the internet has been two primary reasons for crypto adoption. Businesses in the country are also using crypto to grow their operations.
This is great as it shows that nations that do not have their proprietary payment methods can depend on crypto. You do not have to be dependent on the US or any other country for that matter.
Cuba is adopting crypto
The central bank in the country is approving crypto and providing licenses and guidelines to virtual asset service providers. This is important as the US has been very strict regarding excluding Cuba from its payment services. JPMorgan and Deutsche Bank were fined for offering services to the country. Therefore, Cuba has already started to shift towards P2P transactions, and benefits are already visible.
Why and when Cuba was sanctioned by the US?
The United States implemented economic sanctions against Cuba for the first time on February 7, 1962. This happened in response to the Cuban government’s political alignment with the Soviet Union and ongoing efforts to undermine democratic processes. The Cuban Assets Control Regulations, enacted by President John F. Kennedy under the parameters of the Trading with the Enemy Act 1917, went into effect on July 8, 1963. It signified a comprehensive commercial embargo barring all imports and exports between the United States and Cuba.
What are your thoughts as Cubans are bypassing financial sanctions using crypto? And do you think this will show other countries that they need not be dependent on the US? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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