Bitcoin in Cuba: Why some Cubans are adopting BTC to escape ‘The Matrix’

Bitcoin adoption could swell in Cuba, especially if personal businesses comprehend the advantage to accepting Bitcoin (BTC) as currency. Thats according to a Cuban businessperson and Bitcoin advocate, Erich Garcia Cruz.A current emigrant to the United States, Cruz is a vocal supporter of Bitcoin adoption in Cuba. If a Cuban bought the outright top of the Bitcoin bull run, $69,000, they would still have more value in Bitcoin than Pesos. The pension fund has drastically lost value, as the Cuban Peso continues to devalue, while Bitcoin has not only retained, but also increased in buying power: “Its not financial suggestions however its much better to keep your value in Bitcoin than the CUP– a government-issued shitcoin. The internet, as Cruz points out, only started to permeate the nation in a meaningful method over the previous five years.Related: Cuba Bitcoin community hosts BTC-only meetupCruz work and that of the Cuban Bitcoin community targets personal businesses in Cuba; a location in which Bitcoin adoption could grow:” You have to teach the people who have the power to accept that option.

Bitcoin adoption might swell in Cuba, especially if personal businesses understand the advantage to accepting Bitcoin (BTC) as currency. Thats according to a Cuban business owner and Bitcoin supporter, Erich Garcia Cruz.A recent emigrant to the United States, Cruz is a singing supporter of Bitcoin adoption in Cuba. Cruz leads the remittance and money transfer services BitRemesas and QvaPay, and has been outspoken in supporting Cuban citizens using Bitcoin considering that 2020. In an interview with Cointelegraph as part of an upcoming documentary, Cruz explained that Cubans can use Bitcoin “as a tool.” Image of Erich and Joe during the interview. Source: CointelegraphWhile some Cubans use Bitcoin as a store of value, a way of exchange or a remittance tool, eventually, its about getting “out from the Matrix,” he described. Cruz referred to the countrys centrally planned and formally communist economy. Cuba has no independent press, while the historic United States trade embargo makes it really hard for Cubans to access U.S. items, services and even applications. Bitcoin, on the other hand, is money independent of the state, and has no leader or central party. Cruz described that during a see to El Salvador in 2022, one of his good friends asked, “How do you teach about Bitcoin in Cuba if Cuba is run by a communist celebration?” Undoubtedly the party would protest Bitcoin?” I do not understand if the government does not know just how powerful Bitcoin is; they do not know, and they are just thinking Im teaching individuals about coins in the gambling establishment, or if they hesitate of the hyper-Bitcoinization of the Cuban society.” Cruz hints that the government might already comprehend how Bitcoin works, and possibly, “They can bypass some sanctions around the world” utilizing internet-based money. Plus, since 2021 the government has actually been heating up to cryptocurrencies: personal companies can lawfully accept cryptocurrencies such as Bitcoin for products and services. Cruz discusses that increasingly more private organizations need to accept cryptocurrency instead of the Cuban currencies of the Peso or the MLC (Moneda Libremente Convertible/ easily convertible currency”):” If you make money with CUP or MLC, you are solving the clients issue, however you are creating an issue for you because owners are stating that then or later on they will try to convert the CLP or MLC into global currency.” The Cuban Peso has cheapened by more than 800% considering that its creation. If a Cuban bought the outright top of the Bitcoin bull run, $69,000, they would still have more worth in Bitcoin than Pesos. Furthermore, the MLC is a government-backed stablecoin utilized for purchases in state-run supermarkets. Cubans looking to save cash generally do so in the United States Dollar, and increasingly, Bitcoin.MLC cost movement as compared to USD and EUR given that 2015. Cruz shares the example of his dad who bought a small amount of Bitcoin with his Cuban peso pension fund 3 years back. The pension fund has dramatically lost worth, as the Cuban Peso continues to devalue, while Bitcoin has actually not only maintained, however also increased in buying power: “Its not monetary advice but its better to save your value in Bitcoin than the CUP– a government-issued shitcoin.” Nonetheless, despite the big currency decline, Bitcoin struggles with a bad track record in Cuba. Cruz was scammed by a crypto job prior to learning what Bitcoin is.” We have no web [in Cuba] till five years ago and Bitcoin is 14 years old. The very first contact with Bitcoin in our society was through frauds.” Cuba has actually an extremely informed population and university education is complimentary, however, the island is sheltered from western impacts and the web is a relatively brand-new tool. The web, as Cruz mentions, just began to penetrate the country in a significant way over the past 5 years.Related: Cuba Bitcoin community hosts BTC-only meetupCruz work and that of the Cuban Bitcoin neighborhood targets personal services in Cuba; an area in which Bitcoin adoption could flourish:” You have to teach individuals who have the power to embrace that option. And thats the economic sector. Okay? There is no law. There is no law that prohibits business from accepting Bitcoin. Not yet.” Cruz interview will feature in an upcoming documentary about Bitcoin in Cuba. Magazine: Peter McCormacks Real Bedford Football Club puts Bitcoin on the map

Other Questions People Ask

What factors are driving Bitcoin adoption in Cuba among its citizens?

Bitcoin adoption in Cuba is largely driven by the devaluation of the Cuban Peso and the desire for financial independence. As the Peso continues to lose value, many Cubans see Bitcoin as a more stable store of value. Additionally, the increasing accessibility of the internet over the past five years has allowed more people to learn about and engage with cryptocurrencies, making Bitcoin a viable alternative for transactions and savings.

How is Bitcoin perceived in Cuba, and what challenges do users face?

In Cuba, Bitcoin has a mixed reputation, primarily due to past scams associated with cryptocurrency. Many Cubans initially encountered Bitcoin through fraudulent schemes, which has led to skepticism. However, as awareness grows and more individuals like Erich Garcia Cruz advocate for its benefits, the perception is slowly changing. Users still face challenges such as limited internet access and a lack of understanding about how to safely use Bitcoin.

What role do private businesses play in the adoption of Bitcoin in Cuba?

Private businesses in Cuba are crucial for the adoption of Bitcoin, as they can choose to accept it as a form of payment. Erich Garcia Cruz emphasizes the need to educate business owners about the advantages of using Bitcoin over traditional currencies like the Peso. By accepting Bitcoin, these businesses can provide their customers with a more stable and reliable means of transaction, potentially boosting their own economic resilience amidst currency fluctuations.

How does the Cuban government's stance on Bitcoin affect its adoption?

The Cuban government has shown a warming attitude towards cryptocurrencies, allowing private businesses to accept Bitcoin legally. This shift indicates a potential recognition of Bitcoin's benefits, even within a centrally planned economy. However, there remains uncertainty about how far the government will support or regulate Bitcoin usage, which could impact its widespread adoption among citizens looking to escape economic constraints.

What are the potential benefits for Cubans using Bitcoin instead of traditional currencies?

Using Bitcoin offers Cubans several benefits, including protection against the rapid devaluation of the Peso and access to a global financial system. Unlike government-issued currencies, Bitcoin is decentralized and not subject to state control, allowing users to retain their purchasing power. Additionally, as more businesses begin to accept Bitcoin, it could facilitate easier transactions both locally and internationally, enhancing economic opportunities for individuals and entrepreneurs alike.