Cryptocurrencies have witnessed a great level of adoption in Cuba. This is because the locals in Cuba seem to have found cryptocurrencies to be a solution to their financial problems.
Current Situation of Crypto in Cuba
The people in Cuba are able to get so much done with the adoption of cryptocurrencies. Cuba is among the countries that have faced the worst sanctions ever imposed by the United States.
The country has been deprived of so many services and financial benefits that are available to other countries all over the world.
There are also so many financial restrictions imposed in Cuba as part of the sanctions imposed by the United States.
The Cubans are using cryptocurrencies as a way to circumvent financial restrictions and other obstacles. As a result, the cryptocurrency industry has continued expanding in the country.
Prior to the availability of cryptocurrencies in Cuba, people found it almost impossible to live like the rest of the world. They were not able to gain access to international top-ups, mobile, and even shopping services.
In Cuba, the major use of cryptocurrencies is involving remittances. The Cubans living outside of the country are able to send remittances to their loved ones in Cuba using crypto channels.
Despite charging a high fee for remittances, the charges are less than the traditional remittance channels.
Increase in Mining Operations in Cuba
As cryptocurrency adoption has continued rising in the country, crypto mining operations have also become very trendy in the country.
Unfortunately, the crypto mining sector in Cuba seems to be progressing in a negative direction. The cryptocurrency mining sector in Cuba has been facing a lot of backlash from the government and the public.
Once considered a very smart investment in the country, cryptocurrency mining has lost its popularity due to mass energy consumption.
Power Consumption is Rising
The power grid situation in Cuba has been worsening with every passing day and is because of cryptocurrency mining operations.
The power grid has been under a lot of pressure and stress due to the constant rise in mining operations in the country.
As a result, the country is facing major blackouts that have started to become quite consistent recently.
The cryptocurrency mining operations in Cuba have been badly impacted, no matter the scale of mining of operations. Even if it is a small mining business or a major one, it is facing severe blackouts.
People in Cuba have spent a lot of money to get their mining operations up and running. However, the mining rigs are of no use if they are constantly being interrupted by blackouts.
There is a great level of interest among the Cubans for Bitcoin so the majority of the mining operations are for the same crypto.
With the blackouts reigning over the mining operations, Bitcoin mining would be greatly impacted.