Cuba considers cryptocurrencies as a part of anti-crisis measures
- Cuba wants to use cryptocurrencies within its anti-crisis program.
- Venezuela's experience of creating the state-backed cryptocurrency is not inspiring.
Cuba’s government is looking into the idea of using cryptocurrencies within a set of measures aimed at boosting the economy and avoiding devastating US sanctions, Reuters reports.
The government of Miguel Diaz-Canel hopes that the new measures will increase the income of the population, help to raise national production and demand.
“We are studying the potential use of cryptocurrency ... in our national and international commercial transactions, and we are working on that together with academics,” Economy Minister Alejandro Gil Fernandez commented as cited by Reuters.
Obviously, Cuba follows the lead of its ally Venezuela that introduced Petro in 2018 to escape Western sanctions and cope with hyperinflation. However, Venezuela failed to get it right as Perto remains an unloved child of Nicolas Maduro. No one, including Venezuelan citizens, want to use it.
The problem with Petro boils down to the fact that it is controlled by the government that has already discredited itself. The cost of the digital coin does not fluctuate freely based on supply and demand; it is controlled by the government instead.
If Cuba manages to avoid making the same mistakes, its cryptocurrency may have a positive economic effect.
Author
Tanya Abrosimova
Independent Analyst
