It is an alternative to the low salaries of the island’s citizens. Ponzi schemes could be a problem.
Cryptocurrencies in Cuba begin to gain strength despite the silence of the island’s government about Bitcoin, according to local media reports.
As an alternative to the low salaries of the island, Cuban citizens resort to online jobs, with the aim of earning more money.
Just a few months ago, some Cuban citizens took their first steps in electronic commerce, even with the fear that these works were banned and despite the technological barriers and Internet access, which would make the process more complicated.
According to the local information, two applications related to electronic commerce have barely been created on the island and only a few have been launched to use these applications.
In fact, the Telecommunications Company of Cuba (ETECSA) has also tried to combat cryptocurrency entrepreneurs.
According to the community of enthusiasts of “Cubacripto”, the state company has begun to close connection ports to tools abroad that serve to operate with cryptocurrencies.
The concept of blockchain is much more complex and that is why, until now, it is more complicated to understand than cryptocurrencies. For that reason, the number of people in cryptocurrency communities is reduced so far.
No Regulation and Silent
The Cuban government does not talk about Bitcoin or other cryptocurrencies, whilst some citizens see these digital assets as a way to avoid government control, regulations and overcome the low amount that represents the salary.
On the other hand, Professor Alexis Massó Muñoz, from the Cryptography Institute of the Faculty of Mathematics and Computer Science of the University of Havana, told the official portal Cubadebate that the country does not have laws that regulate the subject of cryptocurrencies and blockchain.
However, the professor considers that “it is possible that the country will soon have them”.
Cuba has considered the use of cryptocurrencies to avoid the sanctions that the United States imposed to the island, the Reuters news agency reported in July, citing a source from the Cuban government.
During a public speech on local television, the country’s President, Miguel-Díaz Canel, said a plan in the area would raise capital for about a quarter of the population, which would help pay for the reforms.
“We are studying the potential use of cryptocurrencies in our national and international business transactions, and we are working on it together with academics”, said Economy Minister, Alejandro Gil Fernández, according to Reuters.
It remains unclear if Cuba is considering the possibility of creating its own cryptocurrency, just as Venezuela did with Petro as an alternative to the sanctions imposed by the United States.
A Ponzi Scheme
Recently, the community of enthusiasts of CubaCripto considered it controversial that a Cuban official digital portal such as Cubadebate reviewed the alleged gold sales venture of Karatbars, a German multilevel company listed as a ponzi scheme.
In October 2018, the German Harald Seiz, CEO of Karatbars International, announced that last July 4th, it would be the “Gold Independence Day” and 100 KBC could be exchanged for 1 gram of gold.
The date arrived and the public could not change its KBC for the metal. The KBC cryptocurrency went from worth USD 0.12 to no more than USD 0.03, causing considerable losses to those who invested.
Currently, citizens expect the Government of Cuba to make official pronouncements and take a position about the issue of cryptocurrencies on the island.
By María Rodríguez