Crypto in Cuba Faces Challenges Despite Growing Adoption, Overview

Despite growing adoption, cryptocurrencies still face a number of challenges in Cuba, including limited access to crypto exchanges, lack of a pertinent regulatory apparatus and the growing popularity of a gold-backed MLM stablecoin.

In July 2017, a programmer based in the United Kingdom visited Cuba and, upon arriving home, found that his Coinbase account had been blocked after having accessed the account while on the island.

In November 2018, a report published by Mosaic.io found that 19 of 44 cryptocurrency exchanges restricted Cubans from accessing their platform, making Cuba the sixth-most blocked jurisdiction by crypto exchanges, followed by the United States, which is blocked by 30 exchanges, Iran and North Korea with 24, Syria with 23 and Sudan with 20.CubaCripto members report that there are no traditional exchanges facilitating virtual currency for Cuban fiat currency.

Accessing crypto in CubaFusyona, a company founded in 2018 seeking to bill itself as Cuba's first cryptocurrency exchange, does not offer typical order-matching services.

Crypto gains momentum in Cuba during 2015While last year's roll-out of mobile internet was a catalyst for the recent growth in Cuban crypto adoption, virtual currencies have been slowly taking root in Cuba for at least four years following the introduction of public Wi-Fi networks in 2015.During March 2015, CoinTelegraph interviewed members of Club Anarcocapitalista de Cuba.

At the time, Villar described the softening relations between Cuba and the U.S. as providing the catalyst for Bitcoin to "Begin to flourish in Cuba," highlighting that the presence of U.S. telecommunication infrastructure was improving "Phone and internet services on the island."

Despite his optimism regarding Bitcoin's potential in Cuba, Villar acknowledged that the island's cryptocurrency scene was in its nascent stages, stating that he was aware of only a single Cuban Bitcoin miner.

CAC co-founder Nelson Chartrand described the low rates of internet access as the principal barrier to Bitcoin adoption in Cuba during an interview with Vice in June 2015: "A lot of people in Cuba have never actually been online-that's the big obstacle right now."

When visiting Cuba during July 2015, Villar was involved in the first publicly executed Bitcoin transfers between Cuba and the United States.

"Keep in mind Cuba is a very unique country. It's the only communist country in the Caribbean area - the closest communist country to America. Cryptocurrency has had very little impact on the economy here, on the people. And very few people understand it or know anything about it."