How Bitcoin Became More Valuable Than The U.S. Dollar In Cuba

[ad_1]

For the first time in Cuban history, the US dollar (USD) lost value in favor of another currency, living entirely on the Internet without an army to back it up, Bitcoin. The cryptocurrency traded at a premium to the US currency in cash.

Related reading | Turkish Lira Crash: Bitcoin Freedom Vs. Fiat Currency Monopoly

As Alex Gladstein, director of strategy for the Human Rights Foundation, and Enrique Yecier, a Cuban citizen, reported via their Twitter accounts, the historic change in currency values ​​extends to major cryptocurrencies, Bitcoin, Ethereum. and stablecoin Tether, a digital currency pegged to the US dollar.

$ 1 of Bitcoin or Tether now at a premium in Cuba against $ 1 of paper money.

Feels historic. https://t.co/An0UiuTwCK

– Alex Gladstein ⚡ (@gladstein) December 18, 2021

Due to political tensions between the United States and Cuba, the island has been cut off from the international financial system and its payment rails. At the same time, the North American country has experienced one of the largest migrations of Cuban citizens.

This has created a situation where many Cubans depend on remittances sent by their families abroad, but domestic methods of receiving or sending a transaction in US dollars still affect the citizen. Therefore, payments encrypted with Bitcoin and other coins, without the intervention of a third party, and more efficient in terms of fees and time.

Additionally, Cubans use digital assets to protect against inflation and the depreciation of their national currency. As a result, according to local reports, businesses and traders have started to accept Bitcoin and other cryptocurrencies as payment methods.

The Cuban citizen who made the viral report on the value of Bitcoin surpassing the US dollar on the island, Enrique Yecier, claimed the following about this historic phenomenon:

Complaining that in Cuba a dollar in crypto has exceeded the value of 1 dollar in cash is like complaining that Bitcoin now costs over 46,000 dollars whereas a year ago it cost 23,000. If there is anyone doing things wrong, it is not BTC.

Bitcoin not the most valuable cryptocurrency in Cuba?

Cuba appears to be moving slowly, but surely, towards greater adoption of Bitcoin and crypto. According to an AFP report, the national government granted merchants a license to operate with these digital assets in August.

The measures fall under Regulation 215, according to the report, released by the Central Bank of Cuba. The new rules have been validated since September 15 and aim to regulate the use of crypto-currencies for commercial transactions.

Cuba will recognize and regulate crypto for payments on the island https://t.co/nwZRGaB3rZ

– Bloomberg (@business) August 27, 2021

The country is still far from occupying a relevant place in terms of adoption, as Chainalysis notes in its 2021 report. The top ten countries with the most adoption of Bitcoin and crypto have one thing in common, most are facing a highly inflationary economy or military conflict, as evidenced by the inclusion of Argentina, Ukraine, Venezuela, Afghanistan and others.

Bitcoin is not the tropical island’s most valuable digital asset, according to Yecer. That position goes to TRX (around $ 0.081162) which can go up to 8 CUP per token while a fair price should be around 6.15 CUP, the Cuban citizen said. Apparently, a lot of Cubans are starting their crypto journey on the TRON ecosystem, hence the premium.

Related reading | Bitcoin bearish signal: hash rate drops more than 20% in last 24 hours

At the time of going to press, Bitcoin (BTC) is trading at $ 46,797 with a sideways move in the past 24 hours.

BTC trends downward in the 4 hour chart. Source: BTCUSD Tradingview

[ad_2]