The US government’s restrictions on Fincimex, the company that processes payments from Cubans abroad, led the Cuban government to close Western Union offices in the country. This action will eliminate most remittances coming into the country, which could aggravate the financial situation of the country.

Thanks to the facilities that cryptocurrencies provide to people from different parts of the world, they have had an exponential growth in recent months. The weakening of the US dollar and the COVID-19 pandemic have helped digital assets strengthen their position in the international market this year.

A new situation could contribute to a higher demand for Bitcoin, whose current value is around USD 18,000. The pioneering cryptocurrency offers the advantage that its low issuance favors the increase in its price.

The Government Closes 407 Western Union Offices in the Country

The US government blacklisted Fincimex, a military company that processes payments from Cubans abroad, and the Treasury prohibited any local company from negotiating with them. For that reason, the Cuban authorities decided to close the 407 Western Union offices in the country. According to the British newspaper The Guardian, this situation “would eliminate the majority of remittances and aggravate the country’s profound economic crisis.”

In a statement, The Western Union company sent its farewell message: “Today we inform our clients that they have a time limit to send money to their loved ones from the United States to Cuba.”

Bitcoin is a Solution to Restart Remittances

More than 2 million Cubans living in the United States will now have to find an option to continue sending money to their families. Cryptocurrencies emerged as a very interesting option, so Bitcoin and other cryptocurrencies may fill the void after the Cuban government’s decision.

People have already started moving and searches for the phrase “buy Bitcoin” on Google had a score of 100, the highest on the scale. In Argentina, the Dominican Republic, Venezuela, and Panama, other interested countries, the mark did not exceed 17.

Even though the phenomenon of cryptocurrencies is still not very popular in Cuba, the BitRemesas company is operating. This solution involves intermediary operators charging fees of up to 25% to convert Bitcoin remittances from abroad into fiat money and deliver them to their intended recipients.

Cubans have received USD 29.95 billion in cash remittances for about 10 years, according to information from The Havana Consulting Group and Tech. A total of 90% came from the United States, which is why the closure of the Western Union is causing much concern among the Cubans who have received such remittances.

Given this critical situation, Cubans could find solutions in cryptocurrencies, since governments cannot cancel them as happened with Western Union. Bitcoin and other crypto-assets are valid options for Cubans living in the United States to continue helping their families. Once again, it is clear that the technologies of the future offer great advantages to their users.

By Alexander Salazar

LEAVE A REPLY

Please enter your comment!
Please enter your name here