The Russian government proposed to the Cuban regime introduce an “official digital weight”. for entrepreneurs who would add more fluid to the island’s weakened economy.
the Boris Titov, Russian Presidential Envoy for Protection of Entrepreneurs’ Rights, He met with the President of the Central Bank of Cuba, Marta Sabina Wilson González, to whom he proposed the development of a “special payment center with a banking license” under the supervision of specialists from his country.
This center would function as a branchless bank that would allow the Caribbean nation to conduct financial transactions nationally and internationally, he explained.
In statements quoted by Russia Today, Titov pointed out that for a “official digital weight” which enables the secure and organized flow of money from abroad.
According to the official, creating such a digital financial environment for the use of blockchain technologies would bring more fluidity to the Cuban economy.
For this, the central bank would have toCuban cryptocurrency“And the new digital bank will become its main buyer,” he explained.
“Given the chaotic nature of the exchange rate, it would initially be worth pegging it to one of the world’s largest currencies. It creates certain markets, but it is very beneficial for attracting investments,” explained the Russian expert.
The digital bank would manage the flow of funds (buying and selling) through a mobile application that allows QR code payments, Titov argued.
For example, the Russian expert points out that “tourists visiting Cuba must also download this application and deposit their money there.”
Titov also suggests using these cryptocurrencies for foreign trade transactions, stating that “US dollars can be transferred through a double conversion: first into pesos [cubanos]with a switch to one of the existing cryptocurrencies and then to digital pesos.”
“The risks of sanctions in this case are minimal. However, the cryptocurrency itself cannot be used without being changed to digital pesos,” he clarified.
The organization responsible for Titov told the press that the union was ready to “share its experience in creating a digital environment for business” with the island.
“The Russian side is ready to offer Cuba its own experience in creating a digital environment for entrepreneurs,” he said.
This proposal comes in the context of the Cuban regime’s talks with Russian experts from the Stolipin Institute of Growth Economics, who announced that they will create an Economic Transformation Center to drive reforms in the Cuban economy.
Russian specialists will oversee the preparation of a program to transform the island’s economy – totally in crisis due to decades of mismanagement and wrong policies – which will be based on private sector development and to which Titov will pay special attention.
This important announcement, which received little attention from the official Cuban press, was preceded by the meeting of the Cuban ruler last Wednesday Miguel Diaz-Canel with a delegation of Russian businessmen.
Also in a context where Cuba created the freely convertible currency (MLC) equivalent to the digital dollar.
The president expressed satisfaction that “the agreements” he had made with Russian President Vladimir Putin lay there his visit to the Eurasian country in November last year.