US gives Cuban private business owners access to US online payment systems

The Biden administration is opening up US online payment systems to Cuban private business owners, senior administration officials announced on Tuesday.

The change in policy will allow independent private sector entrepreneurs in Cuba to import food, equipment and other goods, the officials explained. It will also make it easier for remittances to be sent to Cuba and help to stem irregular migration from the island, they added.

“The administration is now fully implementing the May 2022 commitments to the Cuban people. We believe that the growth of an independent, entrepreneurial private sector in Cuba is fully aligned with our values and is the best hope for generating economic development and employment in Cuba,” a senior administration official said. “And the growth of this sector is also consistent with the President’s guidance to implement measures that will benefit the Cuban people while continuing to minimize resources to the Cuban government.”

In 2022, the Biden administration announced a series of policy changes aimed at supporting the Cuban people, including reinstating the Cuban Family Reunification parole Program and increasing consular services and visa processing.

The Treasury Department is taking this step by amending the Cuban assets control regulations.

The announcement comes about six months before the US presidential elections and how Biden navigates Cuba could carry political implications, given he lost Florida to Donald Trump in the 2020 election. During that campaign Trump repeatedly claimed Biden would turn the US into a “socialist country” if he won, a message that resonated with Cuban Americans.

The Cuban government’s “mismanagement of its economy has led to unparalleled high inflation” but the private sector serves as a “life preserver” for the Cuban people, said a second senior administration official. There are over 11,000 private businesses registered in Cuba and those businesses could take advantage of the changes being rolled out.

“Young Cubans are eager to earn private sector wages, rather than work for the state. A class of independent business leaders is emerging. I know this because our team, including myself, both in Havana and in Washington, meets with these individuals,” the second official said. “These entrepreneurs look to the United States for inspiration and to develop the necessary skills to run successful businesses.”

The changes exclude any entities that include members of the Cuban Communist Party, Cuban National Assembly members, Cuban military officers, or certain ministry and staff regime propagandists, officials said.