The Biden administration announced on Tuesday that Cuban private business owners will now have access to US online payment systems. This policy change aims to facilitate economic development and reduce irregular migration from the island by supporting independent private sector entrepreneurs.
Key Points of the Policy Change
- Access to US Online Payment Systems: Cuban private business owners will be able to use US online payment platforms, making it easier to import food, equipment, and other essential goods.
- Easier Remittances: The new policy will simplify the process for sending remittances to Cuba, providing financial support to families and businesses.
- Support for Private Sector Growth: The initiative is intended to bolster the growth of Cuba’s independent, entrepreneurial private sector, aligning with US values and promoting economic development and employment on the island.
Implementation and Background
- Treasury Department Action: The US Treasury Department is amending the Cuban Assets Control Regulations to implement these changes.
- Previous Commitments: This move fulfills commitments made by the Biden administration in May 2022 to support the Cuban people, including the reinstatement of the Cuban Family Reunification Parole Program and increased consular services and visa processing.
Political Context and Implications
- Upcoming Elections: The announcement comes six months before the US presidential elections. The administration’s approach to Cuba could have political ramifications, particularly given the significant Cuban-American population in Florida, a key battleground state.
- Economic Challenges in Cuba: The Cuban government’s economic mismanagement has led to high inflation, but the private sector remains a vital lifeline for the population. Over 11,000 private businesses are registered in Cuba, many of which could benefit from these new opportunities.
Exclusions and Restrictions
The policy change excludes entities associated with the Cuban Communist Party, members of the Cuban National Assembly, military officers, and certain regime propagandists.
Statements from US Officials
- Senior Administration Official: The official emphasized that the growth of Cuba’s private sector aligns with US values and represents the best hope for economic development and job creation in Cuba.
- Second Senior Administration Official: Highlighting the enthusiasm of young Cubans for private sector employment over state jobs, the official noted the emergence of a new class of independent business leaders who look to the US for inspiration and skills development.
Conclusion
The Biden administration’s decision to open US online payment systems to Cuban private business owners marks a significant shift in US-Cuba relations. By supporting the island’s private sector, the US aims to foster economic stability, reduce migration pressures, and provide a counterbalance to the Cuban government’s economic policies. This move is part of a broader strategy to implement measures that benefit the Cuban people while minimizing resources available to the Cuban government.