In Cuba’s capital, Havana, a Bitcoin community has emerged as a response to the country’s economically challenging environment. Cubans are increasingly turning to Bitcoin as their own currency becomes more and more worthless. While countries like Zimbabwe, Venezuela, and Lebanon often make headlines for their runaway inflation levels, the Cuban peso is not far behind. The devaluation of the peso has reached such extreme levels that carrying bags of cash has become common among both the rich and the poor.
Bitcoin has become a lifeline for many Cubans in this situation. Even if someone bought Bitcoin at the peak of the 2021 bull run at $69,000, their money would still be worth much more than if they had held onto Cuban pesos. While Bitcoin experienced an 80% drop during the bear market, it has since recovered completely, while the peso has devalued by 90%. This realization has led many Cubans to swap their local currency for Bitcoin, knowing that even if it crashes, they will still have more purchasing power.
In 2021, an article titled “Inside Cuba’s Bitcoin Revolution” by Alex Gladstein, the chief strategy officer of the Human Rights Foundation, shed light on how Cubans were using Bitcoin to save money and escape financial oppression. Intrigued by this phenomenon, the author of the present article decided to see for themselves what Gladstein had described.
Upon landing in Havana, the author immediately noticed the stark contrast between Cuba and the United States. Cuba is often described as a time warp, where modern amenities and technologies are scarce. The country has been under a trade embargo imposed by the United States since 1960, severely limiting its access to world markets and financial institutions. As a result, Cuban industry, economic output, and commerce lag far behind the rest of the world.
Related Post
Despite these challenges, Cubans have begun to adopt Bitcoin. The journey to acquiring and using Bitcoin in Cuba is not an easy one. Cubans face restrictions when it comes to signing up for popular crypto exchanges like Binance, Coinbase, and Gemini due to their nationality. Cuban Americans on the island also have limited access to American websites. As a result, Cubans often resort to buying Bitcoin through peer-to-peer platforms like Telegram or WhatsApp groups or through in-person meetups.
What is remarkable is the small amounts of money that Cubans are able to save or “stack sats.” Saving just 1,000 satoshis (less than $1) a week may seem insignificant, but it holds significant meaning for Cubans who earn around $40 a month. While the Cuban peso may not be around in 10 years, Bitcoin is seen as a more stable and reliable alternative.
Although the peer-to-peer process of acquiring Bitcoin is straightforward, it poses significant challenges for newcomers. However, these hurdles also come with a silver lining. Since Cubans are denied access to popular exchanges, they are unable to complete the Know Your Customer (KYC) process, which provides them with an extra layer of privacy and security. By buying Bitcoin peer-to-peer and taking ownership of their private keys, Cubans are safeguarding their wealth in a way that custodians cannot guarantee.
Erich Garcia Cruz, the founder of QvaPay and BitRemesas, two platforms that allow Cubans to use Bitcoin for remittances, explains how the limited number of Bitcoin users in Cuba reflects the country’s fledgling internet culture. While access to the internet has improved in recent years, Cuba still faces challenges in terms of internet infrastructure and censorship. The government controls the media and promotes a narrative of trust, making it difficult for independent media publications to operate.
Despite these obstacles, some Cubans have managed to learn about Bitcoin through alternative means. Max Keiser, a well-known Bitcoin proponent, was able to broadcast his show on the Russian news channel Russia Today in Cuba. This exposure to Keiser’s pro-Bitcoin views has led to a growing interest in Bitcoin among the Cuban population.
Bitalion, one of the founders of Cuba Bitcoin, works in the government’s telecommunications sector, which provides him with better internet speeds and fewer online censorship restrictions. He believes that Bitcoin can offer Cubans a way out of their financial struggles. It allows them to have a borderless and independent currency that they can take with them if they are able to leave the country.
For Cubans like Forte, Catrya, and Bitalion, Bitcoin is more than just a practical solution to their economic woes. Its ideology resonates strongly with them. They believe in the principles of decentralization and stateless money that Bitcoin represents. To encourage more Cubans to explore Bitcoin, they organize monthly educational meetups where they explain its principles and philosophy.
The emergence of a Bitcoin community in Cuba is a testament to the resilience and resourcefulness of the Cuban people. Despite facing severe economic challenges and limited access to the internet, they have found a way to embrace the possibilities offered by Bitcoin. It may be a small community at the moment, but it holds great potential for the future of Cuba and its people.
