Cuba and Kenya Might Adopt Cryptocurrency to Overcome Economic Uncertainty

Kavya  |  May 16, 2021

President of Cuba, Miguel Diaz Canel, plans to adopt cryptocurrency as a means to overcome economic uncertainty in the country by adopting cryptocurrency. The administrators of Cuba might adopt cryptocurrency as a means to overcome economic uncertainty in the country. This comes after the Cuban government began exploring the use of digital assets in the economy a few weeks ago. Kenya might follow Cuba in adopting cryptocurrency due to worsening economic conditions.

Cuba Finds Crypto as the Only Option for Economic Recovery

As a result of the COVID-19 pandemic, Cuba's economic situation has deteriorated significantly. Furthermore, the government placed strict restrictions on the citizens causing havoc on the local economy.

According to Cuban newspaper, Cuba’s President Miguel Diaz Canel along with government officials plans to overcome economic uncertainty faced in the country by adopting cryptocurrency. Daz Canel discussed the various benefits of crypto adoption in the region, according to the study.

He also mentioned that he intends to "keep educating the public" about any implementations in the matter. Daz-Canel, on the other hand, warned about ongoing crypto scams on the island, referring to them as "investment pyramid schemes."

The president's intentions were not unexpected. The Communist Party of Cuba (PCC) Congress put forward plans last month that could include looking at how digital assets might help the country's shattered economy.

The government officials of Cuba also made a similar announcement in 2019 about how cryptocurrencies can deal with the country’s economic uncertainty. The Minister of Economy and Planning said:

“We're thinking about looking at the use of cryptocurrencies in national and international business. These kinds of measures will help us progress. We need to find new ways to tackle our economic problems.”

Kenya Might Also Adopt Cryptocurrency of Overcoming Economic Uncertainty

The way the Cuban government planned to overcome economic uncertainty by adopting cryptocurrency, Kenya's Central Bank also looked at utilizing Bitcoin to support the country's depreciating Shilling.

The Kenyan local currency has been on a steady decline for many decades, losing nearly half of its value against the US dollar since 2010. The Shilling has lost 10% of its value against the US dollar in the last year alone.

Therefore, the African country’s Central Bank proposed a method to convert its national currency to Bitcoin. Although no government has attempted such a move before, Central Bank Governor Patrick Njoroge expressed trust in the project:

“We made a tactical and rational decision to switch to Bitcoin. The IMF has always used our currency as a punching bag. This has placed an excessive amount of pressure on the Kenyan Shilling, which harms the economy. This will be put to an end by Bitcoin.”

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