Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
The government officials of Cuba examine crypto adoption as an instrument to overcome financial turbulence in the country. This comes a few weeks after the Cuban authorities started discussing the implementation of digital assets in the economy.
Crypto vs. Monetary Turmoil
The economic situation on the island of Cuba suffered heavy setbacks due to the consequences of the COVID-19 pandemic. Moreover, the government implemented crippling sanctions on the residents, which had a catastrophic effect on the local economy.
As Periodico Cubano reported, the president of Cuba â Miguel DĂaz Canel â together with the countryâs authorities, now plan to face these issues with the help of cryptocurrencies. According to the coverage, DĂaz Canel discussed the possible benefits of crypto adoption in the country.
Additionally, he revealed his intentions to âkeep informing the publicâ about any implementations regarding the matter. However, DĂaz-Canel alerted about the ongoing crypto scams on the island, calling them âinvestment pyramid schemes.â
The presidentâs intentions did not come as a surprise. Last month the Congress of the Communist Party of Cuba (PCC) put ahead proposals that might contain finding out how digital assets can boost the shattered economy of the country.
Back in 2019, the Cuban authorities made a similar announcement on how cryptocurrencies can deal with the countryâs monetary issues. The Minister of Economy and Planning then said:
âWe are considering studying the application of cryptocurrencies in national and international commercial matters. Measures of this type can allow us to move forward. We have to look for alternative means to solve economic problems.â
Similar Situation in Kenya
The move of the Cuban government to fight its financial issues with the help of cryptocurrencies is not the only global example. As CryptoPotato previously reported, Kenyaâs Central Bank explored the option of using Bitcoin to boost its depreciating Shilling.
The Kenyan local currency has been on a downward trend for the past few decades and has lost nearly 50% of its value compared to the US dollar since 2010. In the past year alone, the Shilling registered a decline of 10% against the greenback.
Consequently, the Central Bank of the African country came with a plan to switch its national currency to Bitcoin. Although such a move sounds utterly risky, as no government has done it so far, Central Bank Governor Patrick Njoroge revealed his confidence in the possible project:
âOur decision to shift to Bitcoin is both tactical and logical. Our currency has always been the punching bag for the IMF. This has led to too much pressure on the Kenyan Shilling, and this has a negative effect on the economy. Bitcoin will put an end to this.â
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.