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Cubans Turn to Crypto Amid Food and Cash Shortage

Venezuela, in recent weeks, announced that it has stopped offering food and cash aid to Cuba. As a result of the new resolve by Venezuela in a bid to manage its resources, Cuba is now being faced with one of the worst cases of food and cash shortages across the country. In light of this development, people around the country are now resorting to digital assets. The coronavirus pandemic is already destabilizing the economy of most nations around the globe. With the lockdown restrictions still active in most countries, people suffer since there is no inflow of cash.

Cuba economy suffers as a result of coronavirus lockdown

With the lockdown still in effect in Cuba, the country has suffered a massive shortage of food and cash. After the country reportedly announced that they were short on food and cash supplies, a neighboring country, Venezuela decided to extend a friendly hand and offered them food and cash aids. With the current pandemic now biting hard on Venezuela too, they have announced that they have stopped providing the necessary aids to the country. With the new announcement, the government officials in Cuba have advised citizens in the country to start growing their food in empty spaces.

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With the crisis already getting to the extreme, the citizens of the country have started to complain that they have been witnessing a massive reduction in the number of mules. They complained that the mules, which usually deliver essential goods and cash to the citizens, had reduced drastically. The country noted that the budget of the mules was taken from half of the remittance they got early this year.

Cubans now turn to bitcoin to survive the crisis

To reduce this biting effect, some Cubans have taken to Bitcoin and other digital assets. Peer to peer website, Localbitcoins have witnessed a surge in the number of traders on their platform in Cuba. According to statistics, it noted that a vast amount of Cubans have been trading Bitcoin for at least two years now. Further plunging Cuba into the depths of crisis is the US sanction on the socialist country. Cuba is famed for helping out countries in medical emergencies. Media reported earlier this year that the country sent doctors to Italy when the pandemic was at the highest in the country.

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Reports last year claimed that Cuba turned to digital assets to escape the effects of US sanctions on the country with a telegram channel named Cubanscripto present that boasts of about thousands of Cubans. The Cubans are said to be using the telegram channel to trade and discuss digital assets. Cuba is not the first to be accused of using crypto to evade US sanctions as Venezuela and North Korea have also been accused previously.

Ifaenyi Egede (Nigeria)

Ifeanyi Egede is a new writer on Tokenhell, his articles are cryptocurrency news and platform review based. We recommend following his latest posts as they are always very informative and super interesting.

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