Understanding the Context
The long-standing embargo imposed by the U.S. government on Cuba since 1962 has left its mark on the island’s economy. Sanctions have established barriers to traditional financial systems, pushing Cubans to innovate and adapt in the face of restrictions.
Emergence of Crypto Networks
As reported by the AFP, a growing network of “crypto enthusiasts” has emerged in Cuba, with the aim of facilitating remittances from abroad. These individuals have turned to Bitcoin as a reliance solution, offering a lifeline to those seeking to send financial support to family and friends on the island.
The Role of BitRemesas
One popular method involves a Cuban crypto exchange known as BitRemesas. Here’s how it works:
- Senders buy Bitcoin using their preferred exchange in the U.S.
- They then transfer the Bitcoin through BitRemesas.
- Local crypto users bid on the best prices for the Bitcoin before converting it into Cuban pesos.
This system has created a whole new economy, albeit with the risk of illicit transactions. As one local programmer and YouTuber, Erich García, explains, it’s not just business; it’s a community effort to overcome economic challenges.
The Cost of Doing Business
While this innovative approach is helping people, it’s not without its financial risks. Middlemen who assist in these transactions can charge commissions as high as 25%. Here’s a glimpse into the financial gymnastics that are required:
- Active negotiation through platforms like WhatsApp and Telegram.
- In-person meetings in the sweltering Caribbean sun.
- Long bike rides just to finalize a deal.
With reliability being a key concern, it’s a true test of perseverance, not to mention something straight out of a spy thriller.
The Secret Crypto Society
Many Cubans who engage in this underground economy prefer to keep their activities hidden. Cointelegraph Spanish reports that approximately 10,000 locals dabble in Bitcoin without drawing too much attention. It’s like a covert organization, with members moving between the shadows of legality and necessity.
A Look Ahead
As Cuba continues to tackle oppressive embargo constraints, the importance of these crypto networks may grow. Less reliance on traditional banking could make a more substantial impact on the island’s economy, gradually changing the way Cubans interact with money and resources.
