Is Cuba Gearing up to Pull an El-Salvador?

Takeaways

Resolution 215 recognizes Bitcoin and crypto, citing “reasons of socioeconomic interest.”
Deemed a “historic move” to counter hegemonic influences
The first Marxist country to legally recognize Bitcoin
Cuba “endorses crypto for payments and remittances”

Resolution 215, passed by the Cuban government over the weekend, creates a regulatory framework for crypto to exist in the island country, including officially recognizing Bitcoin. The central bank of Cuba, which was founded by Che Guevara, the leader of the Cuban Revolution in the late 50’s, has decided “commercial providers of related [crypto] services will now need a license from the central bank to continue operations.”

As to the decision to accept Bitcoin, the authorities state it is due to “reasons of socioeconomic interest” which is line with Cuba’s long battle against what they deem imperialism by countries such as the Untied States. Paradoxically, the government in Cuba still essentially requires Cubans to use the US dollar even when “purchasing the most basic consumer products.”

The dollar is seen as “omnipresent” in Cuba, even though authorities have tried to wean off of them. Interestingly, banks no longer allow customers to make cash deposits of U.S. currency. The dollar remains legal tender and the remittance market in Florida for example, is huge–over $500 million dollars from Cuban American’s is sent back to family on the island.

Now, they may just send their family Bitcoin, and Cuba looks primed to try and use Bitcoin or other crypto’s to replace the dollar. American sanctions have crippled the economy in Cuba, and the Cuban Peso literally has a value of zero overseas. Cuba is in dire need of a solution if they want to “rid themselves” of the dollar, and crypto may be able to help them do so.

Boaz Sobrado, a London based fintech data analyst, who spent years working on crypto in Cuba said of the resolution: “It’s historic that they are embracing it. The fact that they are cautiously regulating cryptocurrency shows they are interested in what it can bring them.” Due to sanctions put on Cuba by previous presidents, Western Union closed “all of its 400-plus locations”. Experts have said that cryptocurrency is booming in the country in sort of an “underground” way due to all these political and economic circumstances. The resolution seeks to bring that activity above ground.

More people have cell phones in Cuba now than ever before, and this will only expand the adoption of Bitcoin in the face of their weak local currency. As to the resolution itself, it has has been deemed “a promising sign for Cubans keen to participate in the world economy via bitcoin rails.”

However, the government is still skeptical of crypto, but experts have said this development is a big deal. “Regulators around the world, from communist Cuba’s central bank to the SEC, are trying to come to grips with the cryptocurrency industry. This implies that crypto is a global phenomenon and regulators have decided that it’s here to stay and worth engaging with.” One of these experts told CBNC that crypto has just become “too big to ignore” even in Cuba.

These steps towards regulation in a country with strong economic controls do indeed point to the island country getting on a pathway to begin to accept crypto; and again, it would be in their interest. It is a way, as we’ve seen with El-Salvador, to circumvent the central banks, fiat currencies and IMF’s of the world that act as a de-facto controlling power over weaker countries like Cuba. Bitcoin does in fact, fix this.

As it cannot be wielded by a nation as a bludgeoning tool, it is equitable and by nature, cannot discriminate as there is no one state or entity controlling it. Ironically, it appears Bitcoin, which is the epitome of ‘free market’ laissez fair principles, is actually more appealing to communist countries than capitalist countries, as the capitalist western countries have the most to profit from the hegemony of central banking and fiat.

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Text source: CryptosRus

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