Just recently, it has been revealed to what extent the Cuban residents are going to in order to receive remittances from abroad. The term used for their unique maneuver is referred to as ‘extraordinary’. With this maneuver, they have found an alternative to avoid the banking blockades that the Cubans currently face.
Something that is even more shocking is that the Cubans are paying a hefty amount to the middle-men in order to receive the remittances. Many Cuban residents confirmed that at times, they pay the middle-men up to 25% commission for receiving the remittances. This information has been gathered and reported by the Peruvian Newspaper Agency, known as Gestion.
The reason behind the Cubans not being able to receive remittances through normal mediums is credited to a particular matter. It was a result of the cold war between the Republic of Cuba and the United States of America back in 1962.
As a result, the United States imposed sanctions on Cuba putting the entire country under economic pressure. However, the Cubans working in abroad are always trying to find ways around the banking blockades. They are doing this in order to send money to their families in their home countries.
For the past 58 years, the Republic of Cuba is facing a really hard time related to the financial sectors. Some of the major financial institutions such as Visa, Stripe, & PayPal avoid doing business with Cuba due to the American sanctions.
Not just these major institutions but even other e-pay as well as wire transfer solutions avoid offering their services.
As per the financial sources, the Cubans working abroad sent a whopping $3.5 billion to Cuba back in 2017 in the form of remittances.
However, the cryptocurrency industry has again jumped in to save the day for the Cubans and help them send remittances back to their homelands. A firm named Bitremesas is gaining a lot of popularity among the Cubans for helping them do their transfers. It is a remittance platform that is powered by the bitcoin.
The Cubans from abroad, instead of sending Bitcoin directly to their families in Cuba, send them to the middle-men. This middle-men bid for delivering the money to the family of the person at a percentage.
This process involves converting the Bitcoin (BTC) into fiat and then handed over to the middleman who wins the bid. Then the middleman has to deliver the money to the designated recipients. At times, it can be a 15 to 16 km ride on a bicycle to deliver the money.
However, the reward for making such deliveries is well worth it at times, the middleman ends up getting up to 25% of the money being delivered.