The Cuban government is investigating the possibility of accepting bitcoin and other cryptocurrencies as a means of payment and regulating their use. The country sees it as a way to circumvent US economic sanctions. Earlier this year, El Salvador became the first country in the world to make bitcoin legal tender.
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It was announced in a state newspaper that the Cuban central bank may allow the use of cryptocurrencies “for socio-economic purposes”. The central bank will develop rules for who can and may use the digital currency within the communist state in what way. However, the institution warns that individual use of cryptocurrencies is at your own risk.
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The popularity of digital coins has increased significantly on the island as the Cuban peso has fallen sharply in value. Normally you can also pay with US dollars in Cuba, but that is more difficult since the stricter economic sanctions introduced under Donald Trump’s policy. Current US President Joe Biden also appears to be following that stricter line.
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Cryptocurrencies such as bitcoin make it possible to conduct financial transactions anonymously.
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Landen vs. bitcoin
Countries worldwide are struggling about how to deal with a decentralized currency like bitcoin. The price of the digital currency rose in April to a record $ 65,000 (55,000 euros), but then fell sharply. Partly because she faced headwinds from China. The exchange rate dropped below 30,000 dollars (25,400 euros), but has since been on the rise and is now about 48,000 dollars (41,000 euros).
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China banned banks from cooperating in bitcoin transactions. Beijing also stepped up its fight against bitcoin mining. To verify bitcoin transactions, special computer systems worldwide are puzzling all day long, which consumes a lot of energy. Iran has also temporarily banned bitcoin mining for fear of electricity problems.
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South American countries are more positive about bitcoin. El Salvador became the first country in the world to make bitcoin legal tender. Cryptocurrencies are also popular in countries such as Argentina and Venezuela, which suffer from hyperinflation. In Panama, a neighboring country of El Salvador, there are also legislative initiatives to make bitcoin legal.
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In Europe, Switzerland in particular is known as one of the most enthusiastic countries regarding cryptocurrencies. The city of Zug in particular is a real hub for crypto companies, which can even pay their taxes in bitcoin.
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Volatility
Bitcoin, Ethereum and other cryptocurrencies or ‘altcoins’ fluctuate rapidly in value, making them unsuitable as a means of payment according to some experts. On the other hand, the growing interest from institutions and companies, according to insiders, is helping to slowly make the currency widely accepted.
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