Interest in cryptocurrencies is increasing in Cuba due to regulatory uncertainties

Cuba is seeing an increase in cryptocurrency activity as there are apparently no corresponding regulations in the countryAccording to top managers of local crypto companies.

beginning of November Cuba saw a significant increase in Google queries related to Bitcoin (BTC).This indicates an increase in crypto activity in the country. The founders of the main local stock exchanges, Qbita Y. Bitremesasthey said to Cointelegraph The activity on the platforms has increased in the last few months.

Erich Garcia, the creator of Bitremesas, told Cointelegraph that The platform has grown steadily this year, are seeing a remarkable influx in user activity. “At this point, usage of the service is increasing 200% every month.”Said Garcia.

Interest in cryptocurrencies is increasing in Cuba due to regulatory uncertainties
Interest in cryptocurrencies is increasing in Cuba due to regulatory uncertainties

“Bitcoin usage and volume in Cuba is currently skyrocketing,” he said Mario Mazzola, Founder of the Qbita exchange. According to the executive, Qbita’s trading volume in October was the same as the total for July, August and September combined.

But still, The regulatory status of activities related to cryptocurrencies is not yet defined in Cubasaid both executives. Amid this regulatory uncertainty, several entrepreneurs are banking on cryptocurrencies, Garcia said:

“”[En este momento]Since cryptocurrencies are not regulated in Cuba, the government simply does not consider these currencies to be real money so far. So many entrepreneurs are migrating their trade to this more powerful global currency. “

Mazzola from Qbita said that Cryptocurrencies in Cuba are “completely deregulated”At the same time, the local government has approved them as a means of evading sanctions. Added:

“In Cuba, cryptocurrencies are completely deregulated. They are neither legal nor illegal. […] In fact, representatives of the Cuban government have repeatedly suggested on television that the authorities value cryptocurrencies positively because they understand that they can be a powerful weapon against the US embargo. “

Since there is still no concrete legal status for cryptos in Cuba, Operating local crypto exchanges could raise regulatory issues, but the founder of Qbita is confident that local crypto companies are not at risk because of There is also no law expressly prohibiting them from operating.

“Such P2P transactions are perfectly legal as there is no law in Cuba prohibiting people from buying, holding, using and selling Bitcoin to anyone else,” said Mazzola.

According to him, Local currency reforms could be one of the main reasons behind the growing interest in digital assets in Cuba. The Cuban government plans to get rid of its dual currency economic model, getting rid of the Cuban convertible peso, and keeping the Cuban peso. Mazzola said:

“The rise in BTC in Cuba is due to the fact that the government recently announced major currency reforms that include currency unification (CUC exits, CUP stays) and the devaluation of CUP against the US dollar. As a result, people are using Bitcoin to avoid inflation and the negative effects of devaluation on their savings. “

As previously reported, This growing interest from Cubans is in part a response to the lack of digital financial services in the country. Big companies like PayPal Y. Stripes Providing services to citizens under sanctions imposed by the United States Bureau of Foreign Property Control, or OFAC.

The restrictions on Cuba’s access to financial services apply not only to traditional payment companies, but also to global crypto companies like Paxful and LocalBitcoins.. Jukka Blomberg, Marketing Director for LocalBitcoins in Finland, said:

“Cuba is on the OFAC sanctions list and we have contractual obligations with some of our partners, which means that we cannot operate in Cuba. I am not sure if this will change in the future. Unfortunately, this is the case today. “

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