December 2, 2020

Cryptheory

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Bitcoin adoption in Cuba set to surge after Western Union exit

2 min read

  • US sanction force Western Union to quit Cuba
  • Boaz Sobrado explains how Western Union exit would lead to Bitcoin adoption rise

Bitcoin adoption is tipped to rise in Cuba as money transfer giant Western Union set to exit the Carrabin country. The money transfer giants are exiting Cuba because of US sanctions against Cuba’s communist government.

From Monday, 22nd November, Western Union would cease money transfer from the US to Cuba, posing a chance for improved Bitcoin adoption. Money remittance from the US to Cuba is estimated to hit around two to four billion US dollars annually via different platforms, Western Union inclusive.

Cuba earns so much from the US as more than half of Cuban American families send money to relatives in Cuba. These cash injection into Cuba’s economy plays a pivotal role in the Carrabin country.

How Western Union exit could translate to increased Bitcoin adoption in Cuba

Boaz Sobrado, a data analyst in Cuba, has tipped Western Union exit to be a chance for Cubans to increase Bitcoin adoption.

Sobrado likened Cuba’s situation to what is experienced in Venezuela, stating that Cuba is experiencing high-level inflation sanctions. He said ways the country earns hard currency, tourism, and remittance have been shut off due to sanctions and coronavirus.

Sobrado said it provides an opening for Bitcoin as Cuba has experienced a surge in peer-to-peer Bitcoin exchanges. Order size for buying and selling Bitcoin has grown on Telegram as people now easily sell up to 12 Bitcoin daily, a rise from 1 Bitcoin usually sold daily last year, Sobrado said.

The data analyst disclosed that crypto firms like Bitremasas in Cuba don’t require Cuban recipients to have a bank account with other crypto firms with similar requirements springing up. Similarly, local remittance shops where people can trade Bitcoin and foreign currencies for Cuban Peso are also rising.

These crypto firms and local remittances are primed to take over with Western Union exit.

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