According to a report from Reuters, Cuba is considering using cryptocurrency to dodge U.S. sanctions. Reuters quoted a government source.
Via a public address on television, president Migual Diaz-Canel of Cuba said the plan would raise capital for around one quarter of the population.
Cuba has been affected by the inflation in Venezuela, which happened to be a major source of aid.
According to Reuters, economy minister Alejandro Gil Fernandez said: “We are studying the potential use of cryptocurrency… in our national and international commercial transactions, and we are working on that together with academics,”
TestBoo has previously reported that Venezuela issued its own state-run cryptocurrency, Petro, last year. Petro was also made to dodge sanctions but its use has so far remained limited due to a lack of international interest.
States such as Iran which is facing a hostile U.S. reception are considering adopting this measure.
Whether Cuba will create its own cryptocurrency token is still unclear. Gil Fernandez said the cryptocurrency-sponsored reforms are needed as it would make room for some form of decentralization in an economy largely operated under soviet principles.
Cryptocurrency is gradually taking over the globe but if the governments keep issuing state owned cryptocurrencies, how will the main aim of cryptocurrencies which is decentralization and freedom from government control be achieved ?