Cubans Turn to Bitcoin, Ethereum and Dogecoin as US Sanctions Bite

Source: Adobe / Delphotostock

Another report showed how Cubans are circumventing United States sanctions by using Bitcoin (BTC) and Altcoin remittance solutions – all but impossible with conventional remittances between U.S.-oriented nations and the communist state.

ONE report The Spanish-language service of Deutsche Welle noted that some Cubans are now turning to altcoins as well, with some transfer transactions being carried out in Ethereum (ETH) and Dogecoin (DOGE). The outlet found that an estimated 10,000 people in Cuba are using cryptoassets.

The BitRemesas The platform, which grew out of nowhere this year, has around 300 to 400 users, according to its founder, who claim that the platform’s operators are working on paying Cubans – or more precisely, their overseas family members – to pay for electricity and Electricity to enable bills of other utilities with crypto.

BitRemesas claims that it has a high transfer volume, but often in small amounts ranging from $ 10 to $ 20, with transfers in the $ 100 range being a rarity. previously reported the BitRemesas surge. The platform calls for Cubans overseas to convert their fiat earnings into bitcoin and essentially make their transfer requests for a negative auction. This enables medium-brokered Bitcoin enthusiasts in Cuba to bid for the right to receive the BTC, convert it to fiat (or blunt the equivalent to fiat) and hand-deliver the transfer to the recipients of family members.

The catch, of course, is that the middlemen can offer to receive part of the transfer as a commission fee, with fees of up to 25% being common, and that the BitRemesas platform is also making a cut.

Also, as reported last month, money transfer platforms like Western Union have closed their offices in the country after the heads of state and government in Havana and Washington imposed numerous sanctions. This has hit some of Cuba’s poorest citizens in the pockets – many families in the country rely on remittances from relatives living and working abroad for a living.

According to The Havana Consulting Group and Tech DataOver the past 10 years, the Cuban population has received $ 29.95 billion in cash transfers. 90% of that money came from the US. In 2018, the amount of money sent to Cuba was estimated at USD 3.69 billion, up 3.6% from 2017, according to the consulting firm.
Learn more:
Venezuela is expanding the scope of its remittance platform to include Bitcoin & Litecoin
How gift cards fueled P2P Bitcoin trading
Mexico Receives 11% of All LATAM Retail Crypto Payments – Report
The village in El Salvador is turning its back on Fiat in favor of Bitcoin