Cryptocurrency is now officially part of the Communist Party agenda in Cuba. At the weekend, the Cuban government accepted a proposal to include cryptocurrencies in its plans as part of the “economic and social policy rules of the party and the revolution” by 2026.
Public policy in Cuba is discussed and decided at large meetings organized by the country’s Communist Party. At the eighth congress of the Communist Party, participants proposed various changes aimed at improving the country’s economy amid global economic sanctions initiated by the United States.
The list of accepted proposals will serve as a kind of general guide providing government bodies with the objectives they need to achieve in the next five years. One of these goals will now be “to advance in the study of cryptocurrencies in the current conditions of the economy.” The idea that the island nation should seek to use crypto to circumvent economic sanctions has previously been discussed by government officials, but the last measure is now making it official policy.
The details are very limited, and the Cuban Communist Party has yet to reveal its specific plans for cryptocurrencies. But if the country takes cues from Venezuela, a socialist nation and a powerful political ally, everything from developing its own state-backed digital currency to leveraging established cryptos like Bitcoin or Ethereum could be on the table.
Bitcoin and cryptocurrencies have increasingly become part of the larger geopolitical debate. Just last week, PayPal and Palantir Co-Founder Peter Thiel raised the possibility of China using Bitcoin as a financial weapon that could threaten the global hegemony of the US dollar. But in the meantime, several leading US cities and institutions such as Tesla, BlackRock, Skybridgi, and even Miami continue to be interested in Bitcoin as a potential inflation protection that protects their assets should the dollar fall.
Meanwhile, many countries around the world have begun to explore ways to use the digital currency to reduce the US influence on their economies. Countries such as Brazil, Iran, China, Bermuda, Venezuela, and the Marshall Islands have adopted a variety of approaches, from supporting the cryptocurrency mining industry to developing sovereign digital currencies. Venezuela has taken this one step further and has now confirmed that its international reserves include Bitcoin and Ethereum.
While it remains unclear how the Cuban government will approach cryptocurrencies, Bitcoin adoption continues to increase.
While adoption of cryptocurrencies remains low compared to the general population, small communities of Bitcoin users in Cuba are thriving and growing. Software developers in the country are increasingly looking for ways to make it easier for people in Cuba to access Bitcoin, despite poor internet infrastructure.