Cuba considering use of cryptocurrency


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Cuba considering use of cryptocurrency

 
1552978963-GettyImages-1063787638-48x27.A picture of bitcoin
Cuba looking into cryptocurrency

Cuba’s Communist government is considering the use of cryptocurrency as part of a series of measures to boost its economy amid a deepening crisis exacerbated by US sanctions.

Cryptocurrency, which allows financial operations to be carried out anonymously, has been used in the past to get around capital controls.

Cuba’s ally Venezuela introduced a cryptocurrency last year aiming to avoid US sanctions and weather hyperinflation, although it never properly got off the ground.

Cuba’s state-run economy is facing a crisis due to a sharp decline in Venezuelan aid, lower exports and the tightening of the decades-old U.S. trade embargo under President Donald Trump.

The new measures, announced on state-run TV by President Miguel Diaz-Canel and his government, will raise income for around a quarter of the population and further market reforms.

The aim is to raise national production and demand in order to boost growth as US sanctions target tourism and foreign investment.

The most popular measure in the new package will likely be the hikes in some pensions and wages for workers in public administration, social services and state-run media, bringing the medium monthly wage in those sectors up to the equivalent of $US 44.5 from around $US25 previously.

Many Cubans say the measure still will not be sufficient to breach the gap between salaries and the cost of living.

https://thenewdaily.com.au/news/world/2019/07/03/cuba-considering-use-of-cryptocurrency/

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Considering 1 Bitcoin is currently equal to 11,767.20 USD, I just don't see it. At least not with Bitcoin. Could you imagine the confusion over the price of cigars. A box of Cuban cigars in the US, even a pricey box, say 500USD, would be equivalent to 0.043 Bitcoin. A monthly pay in Cuba of 30CUC would be 0.00254 BTC. The volatility of BTC could ruin the countries economy overnight.

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.... deep inside the Cuban Ministry of Finance....

Juan - "Miguel, what are we going to do? How can we help the people? Should we try Bitcoin?"

Miguel - "Bit coin? Brilliant! We shall pay the Cuban people in bits of coin!!!"

image.jpeg.a61372c7a0699907d13ce3e165e9af22.jpeg

  • Haha 2
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It makes perfect sense if everything I’ve read about Bitcoin, and Cuba are accurate.

Bitcoin can only be accessed and used electronically, through a password.

Cuba’s internet access is questionable at best.

If you lose your Bitcoin password there is no way to recover, or access the Bitcoin you have. Therefor if the internet fails, you can not use your virtual currency.

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