on the crypto
When a country faces a severe economic crisis or experiences a long period of political turmoil, cryptocurrencies are often discussed. In fact, they represent an alternative to face difficult times. While cryptocurrencies are not an uncommon issue in Cuba, the Cuban Communist Party (CCP) has recently shown an interest in digital assets to address the economic crisis.
Party delegates want to assess the feasibility of cryptocurrencies in the "current economic conditions"
According to the Cuban Directorio, some members of the CCP have suggested that the country should enter the sphere of cryptocurrencies as "an alternative to address the current economic crisis" that the island is going through.
Cuba is facing an economic crisis due to international sanctions imposed several years ago. In addition, the pandemic has hit the country on many fronts, notably the tourism industry.
During the 8th Congress of the Communist Party of Cuba, the delegates asked to include cryptocurrencies as part of the update of their "guidelines of the economic and social policy of the Party and the Revolution".
Indeed, Cubadebate, a Cubadebate-based media, said that during the Havana congress, it was proposed to "advance in the study of cryptocurrencies in the current economic conditions".
However, the CCP did not provide further details on the proposal to include cryptocurrencies. However, the Cuban Directorio hinted that the Communist Party of Cuba could follow in the footsteps of Venezuelan President Nicolás Maduro. That is, to create a state-owned token, such as petro (PTR).
Covid-19 and US sanctions have increased the use of cryptocurrencies in Cuba
As of press time, the Cuban government - currently headed by Miguel Díaz-Canel - has shown no interest in making cryptocurrencies a state affair.
Overall, Cubans have faced severe restrictions in recent years to send remittances due to the new measures enacted by the US government. This has forced companies like Western Union to close their operations on the island.
In 2020, reports suggested an increasing use of cryptocurrencies by some Cuban residents. This is because cryptocurrencies were used to pay for utilities and for cross-border payments, less for invest.
Furthermore, the restrictions imposed on the movement of people to curb the spread of Covid-19 have triggered an increase in the use of cryptocurrencies. Especially from Cuban expats when sending money.
Meanwhile, the Biden administration is moving towards cryptocurrency regulation
Fox Business's Charlie Gasparino reported that the Biden administration is in what has been described by people close to them as "the early stages of developing a regulatory approach to crypto markets." He noted that the number one priority is infrastructure, followed by taxes.
Additionally, sources close to the SEC have indicated that the commission is discussing whether to approve a bitcoin exchange-traded fund (ETF). Regarding the time frame in which these rules will be applied, it is expected that it will take at least a month.
