At least 100,000 Cuban citizens have started using cryptocurrencies

Many Cubans are now using cryptocurrencies as an alternative means of exchange due to restrictions imposed by US sanctions on the country’s traditional payment systems. According to reports, more than 100,000 Cubans use digital assets mainly due to the mobile Internet, which appeared in the country only three years ago.

Cuba is ruled by the Communist Party, and therefore citizens cannot use internationally recognized debit and credit cards due to US sanctions. Paypal, Revolut, and other companies are banned from the region.

But not cryptocurrencies: Cuba’s central bank has announced that it will start issuing licenses to virtual asset service providers this month. And last year, the Cuban president and the government even considered legalizing cryptocurrencies for payments.

However, the Cuban authorities will not be able to circumvent the sanctions, which are suitable for small businesses and microtransactions, but not for national governments. Changpeng Zhao, CEO of Binance, is convinced that the use of cryptocurrency for sanctions is a myth. «Cryptocurrencies are too traceable,» he said. «Governments around the world are getting better at tracking cryptocurrency transactions.»