Cuba’s socialist Castro dictatorship is studying cryptocurrency to see if it can help mitigate 60 years of destruction caused by its failed socialist economic policies (via Reuters):
Cuba’s Communist government said on Tuesday it was studying the potential use of cryptocurrency as part of a series of measures to boost its economy amid a deepening crisis exacerbated by U.S. sanctions.
Cryptocurrency, which allows financial operations to be carried out anonymously, has been used in the past to get around capital controls. Cuba’s top ally Venezuela introduced a cryptocurrency last year aiming to avoid U.S. sanctions and weather hyperinflation, although it never properly got off the ground.
Cuba’s inefficient state-run economy is facing a crisis due to a sharp decline in Venezuelan aid, lower exports and the tightening of the decades-old U.S. trade embargo under President Donald Trump.
The idea of adopting cryptocurrency in Cuba may sound great on paper, but like the corrupt socialism that has plagued the island nation for six decades, it will never work in practice.
First of all, Cuban citizens would need widely available and unfettered access to the internet to trade in cryptocurrency. The Castro dictatorship has not allowed widespread internet coverage on the island and even less so unrestricted access to what little connection there is.
Second, cryptocurrency is by its very nature a decentralized currency. The Cuban regime, on the other hand, runs a fully centralized socialist economy that must remain in complete control of the Castro dictatorship.
The likelihood of the Castro dictatorship decentralizing the economy and the national currency is slim to none, and slim hasn’t been seen in 60 years.
There is a purpose behind all the cryptocurrency talk in the halls of the Cuban Communist Party Headquarters: It is yet another distraction that gets the Cuban people talking about something else besides the totalitarian dictatorship that keeps them in poverty and misery.