Puerto Rico to Combat Corruption with Blockchain, Says Government Official

Rafael “Tatito” Hernández – Speaker of the Puerto Rico House of Representatives – said the growing blockchain industry could bring more accountability and transparency to the public sector. He also raised hopes that his nation could become one of the cryptocurrency centers on the planet.

Puerto Rico Aims to Become a Crypto Hub

Puerto Rico – a Caribbean island and an unincorporated territory of the USA – is one of the most corrupt nations around the globe. At the same time, a big chunk of locals live below the poverty line. Extortion there is common not only among the general population but also on the higher levels.

A few days back, the mayor of the municipality of Cataño pleaded guilty to accepting over $100,000 in bribes and luxury watches in exchange for millions in municipal contracts.

In a recent interview for Bloomberg, Rafael “Tatito” Hernández said he will begin meeting with experts from the blockchain sector and discuss creating “smart contracts.” According to him, the transparency behind the technology could enhance Puerto Rico’s financial network and even reduce the level of corruption.

“We have a real credibility problem. And this might be part of the solution.”

Hernández added that those meetings will also be part of a broader mission to turn Puerto Rico into a hub for digital assets and blockchain innovation. The low taxes in the state and the fact that trading with bitcoin and the altcoins is not a subject of taxation have recently attracted thousands of new residents.

Hernández believes that locals should also focus on the cryptocurrency industry as it might create job opportunities and establish a better lifestyle for them:

“Back in the 60s and 70s, we had the niche of manufacturing. This is a new niche, a new opportunity to create jobs.”

Cuba Tried The Same Maneuver

Earlier this year, another Caribbean island – Cuba – announced plans to examine crypto adoption as an instrument to overcome financial turbulence in the country.

President Miguel Díaz Canel vowed to” keep informing the public” about any implementations regarding the matter. However, Cuba’s leader alerted about the ongoing crypto scams on the island, calling them” investment pyramid schemes.”

Back in 2019, the Cuban authorities made a similar announcement on how cryptocurrencies could deal with the country’s monetary issues. The Minister of Economy and Planning then said:

”We are considering studying the application of cryptocurrencies in national and international commercial matters. Measures of this type can allow us to move forward. We have to look for alternative means to solve economic problems.”