Long-term US sanctions drive the Cuban people to adopt cryptocurrency.

The Cuban people are using Bitcoin and other cryptocurrencies as alternative financial tools due to the scarcity of long-term financial services in the country.

Long-standing Embargo Since the Cuban Missile Crisis

The long-standing trade embargo imposed by the United States on Cuba dates back to the 1960s. Although diplomatic relations were restored in 2015, tensions between the two nations have escalated under the current U.S. President, leading to a stalemate.

The prolonged trade sanctions have isolated Cuba from international financial networks, including essential online payment systems and credit cards. With the growth of the internet, it seems that the people of Cuba are turning to Bitcoin to circumvent the impact of the U.S. trade embargo.

The report mentions a Cuban citizen, Jason Sanchez, who used cryptocurrencies to purchase mobile phone accessories online, saving his phone repair business.

CubaCripto is one of the Telegram cryptocurrency discussion groups in Cuba that facilitates cryptocurrency transactions. Its founder, Alex Sobrino, stated:

Currently, around 10,000 Cuban citizens are using cryptocurrencies: we use cryptocurrencies to top up our phones, shop online, and some even use cryptocurrencies to book hotel rooms.

Emerging Regulatory Issues

Fusyona claims to be Cuba's first cryptocurrency exchange with 1300 users. Adrian C. Leon, the founder of Fusyona, highlighted the growing importance of cryptocurrencies amidst the long-term U.S. embargo:

For foreigners, cryptocurrencies are just one option, but for the people of Cuba, it's almost a necessity. It's their solution to being excluded from the global financial system.

As cryptocurrency trading remains in a gray area in the country, Leon also expressed concerns:

People are worried that the government will regulate cryptocurrency-related services, and the public fears that the government will restrict or ban transactions, labeling it as illegal enrichment.

ABM previously reported that the Cuban government announced on state-run television that it might incorporate cryptocurrencies as part of an overall plan to boost economic development amid escalating U.S. sanctions.

While the Cuban government has not clearly stated whether they will issue tokens or use existing cryptocurrencies, this move may be influenced by Venezuela, which introduced the state-backed Petro cryptocurrency early last year.

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