Cubans Use Cryptocurrency to Circumnavigate Strict US Trade Transactions
On September 12th, 2019, it is reported that thousands of Cubans are diving into the Cryptocurrency pool to make US trade transactions when shopping and sending funds.
Reuters reports that this new interest in crypto has helped the Cuban nationalists to get around the US trade sanctions, which has isolated the country for decades.
As a developing country, Cuba still lives in a considerably analogue world, but a recent rollout of cell phones has enabled many citizens to access Cryptocurrency. Individuals and businesses are now using Cryptocurrency to buy goods abroad, trade and make investments.
How Cryptocurrency Is Skirting US Financial Sanctions in Cuba
For the past decade, the US has had stiff restrictions imposed on the financial market and international payment systems in Cuba. Cubans are denied access to credit and debit cards, which are even harder to obtain abroad.
Well, since crypto regulations are not strict in Cuba, its Citizens find it easy to make US trade transactions like purchasing items online, invest, and trade internationally. Adrian C. Leon, a Computer Scientist in Cuba, said:
“For foreigners, cryptocurrencies are just another option. But for Cubans, it is a necessity and can be a solution to their exclusion from the global financial community.”
Earlier in September, Jason Sanchez, a shop owner in Havana, was able to buy spare parts from an online chain store by using Bitcoin. He said that Cryptocurrency is opening doors for Cubans.
Fusyona, a Cuba-based Cryptocurrency exchange is the first of its kind in the country. It uses the traditional currency to accept remittances from people abroad who want to invest in major crypto exchanges.
Crypto is the Way out for South American Countries Facing Hyperinflation
In recent years, many South American countries have suffered annual inflation. Such dire economic situations are increasingly making Cryptocurrency like Bitcoin, an attractive investment avenue that is borderless and resistant to inflation.
Many people, businesses, and institutions are now migrating to digital currency. In Venezuela, local businesses are increasingly using Cryptocurrency to store, transact and own something of value. Venezuelans believe that crypto is safe from sudden government inflations.
Presidential elections in January 2019 in Brazil caused an upward inflation rate. Consequently, Cointrader Monitor reported more than 100000BTC traded in the Brazilian crypto exchanges.
In Argentina, the inflation rate extended from Brazil like a fever. Investors in Argentina are now turning their focus on Cryptocurrency to trade internationally.
Mexico has also experienced a rise in crypto exchange trade after US President Donald Trump threatened to clamp down illegal migrants’ remittances.
About The Author
Wayne JonesAm Wayne, a Blockchain enthusiast and expert in crypto trading. Currently, I cover trendy issues on digital currencies.
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