July 3, 2019 | AtoZ Markets – The Communist government of Cuba is studying the use of cryptocurrency as part of anti-crisis measures in order to bolster its finances and combat US sanctions. When the first Cuban crypto will go live?
Cuba considers cryptos to combat US sanctions following Venezuela footsteps
As the media reported, the government of Cuba made an announcement on a local TV. The authority revealed its plans to use crypto as part of measures aimed to boost incomes for as much as a quarter of Cubans and assist with market reforms.
The country might be taking its ally’s-Venezuela- example, which launched its own crypto Petro in 2018. According to the President of the country, Nicolas Maduro.
Petro backed by Venezuelan oil reserves was a part of Nation’s Economic Recovery, Growth, and Prosperity Program. Russia, which also came under sanctions by the US and EU, has recently announced its plans to launch its own crypto.
In June 2019, the Russian media reported about Russia’s Central Bank considering possibilities of issuing its own crypto in the near future. Earlier, the local media revealed, that Caracas and Moscow were discussing the possible use of Venezuela’s Petro.
Soon after that Russian bank was sanctioned by the U.S. Treasury after it was considered to have assisted the financing of the petro. It is worth to mention, U.S. President Donald Trump also added the petro to its list of sanctioned assets.
The government of Cuba has not revealed yet if the state might launch its own token or use existing alternatives.
US sanctions hit the Cuban economy
Along with Venezuela, Russia, Iran, North Korea, Cuba suffers from tough sanctions from the United States. Moreover, due to the financial and political catastrophe continuing in Venezuela, Cuba lost the support of possibly its only ally.
Cuban President Miguel Diaz-Canel, speaking of the launch of Cuban crypto, noted that this would help boost national production and also stimulate economic growth.
According to reports, this package will increase some pensions and wages for government officials, social services and state media, almost doubling their average monthly wages. the state seems to have high hopes for its crypto dreams. However, only time will show, will Cuba become the next crypto nation or second Venezuela.
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