In Cuba, the demand for hard currency such as the Dollar or the Euro rises. The efforts to end the dual currency system of the country, the fear of instability – and encouraged the citizens to search for potentially less volatile vehicles, in which your wealth can save. For Example, Bitcoin.
The rising demand has made it difficult for consumers to acquire harder forms of money as the two national currencies. A report from Reuters that Cuba currently uses the Peso and the Dollar, corresponding to the convertible Peso (CUC).
The latter is due to expire, which triggers the fear of further currency devaluation and a growing demand for potentially less volatile funds.
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To obtain hard money is always harder
Roly, a 28-year-old smuggler who imported black market goods in the Nation, claims Of financial institutions to get hard money had become in the last few weeks Essentially impossible:
“For weeks there is no more money in the banks or exchange offices, you must look elsewhere… I spent a half a day on the street under the sun and I have not been able to buy even a single Dollar.”
Macro-factors have the inflow of Dollars into the country limited – for example, the tightening of trade sanctions by US President Donald Trump against Cuba, and the termination of the contracts of Cuban Doctors in South America. The government has also introduced the “Dollar store” to get something harder money in their own reserves and to protect against any volatility, which could bring the mission of the CUC with.
However, the CUC will lose the Cuban Economist Omar Everleny that already the value of:
“The CUC has already begun to lose value. The economy is already dollarized, even if no one says.“
Historically, the forms of hard money have triumphed over the more volatile forms. If people have a choice, they prefer almost always a money losing thanks to the interference of those who spend it, or its monetary policy control, is less likely to suddenly have a lot of value.
Bitcoin is better
Bitcoin represents, with its strictly limited supply, and the regulated output, the hardest Form of money known to mankind ever. Since the Cuban difficulties to find dollars or euros, make your own, the value of losing the national currency, could Bitcoin be secure for the citizens a more attractive.
Bitcoin is not only limitless, and thus, a harder form of money than the Dollar or the Euro he is to buy currencies in tightly controlled economies like Cuba also a lot easier to work on than foreign Fiat. Cubans do not have to use the local money exchange office or Bank, with the digital assets deal value.