Cuba Eyes Cryptocurrency as Solution to Sanctions, Financial Woes

Cuba has announced it is considering the use of cryptocurrency in order to bolster its finances amid U.S.-led sanctions.

Jul 3, 2019 at 8:00 a.m. UTC
Updated Sep 13, 2021 at 9:23 a.m. UTC

Cuba has announced it is considering the use of cryptocurrency in order to bolster its finances.

According to a report from SBS-AAP, the country's Communist government announced on state-run TV that it would potentially use crypto as part of a package aimed to boost incomes for as much as a quarter of Cubans and assist with market reforms.

The move is possibly influenced by the nation's ally, Venezuela, which launched its own "petro" cryptocurrency early last year. It's not clear from the report if Cuba might launch its own token or use existing alternatives.

Like Venezuela, Cuba is suffering from tough U.S.-led sanctions and has also seen a drop-off in aid from Venezuela which is undergoing both financial and political crises of its own.

In the TV announcement, Cuba's President Miguel Diaz-Canel indicted that the cryptocurrency plan is aimed to raise national production and demand in order to boost growth.

The package would reportedly boost some pensions and wages for employees within public administration, social services and state-run media, almost doubling their average monthly wage.

If so, the state appears to be placing a lot of hope in its crypto dreams. Venezuela has not seen its petro token take off internationally, despite having touted it at OPEC as a means for the world to pay for oil.

Soon after launch, U.S. President Donald Trump also added the petro to its list of sanctioned assets.

Companies assisting the project in avoiding sanctions could also get in hot water. A Russian bank was itself sanctioned by the U.S. Treasury after it was considered to have assisted financing of the petro.

Cuban graffiti image via Shutterstock


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Terra's Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

CoinDesk - Unknown
2
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
3
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown
4
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown