Many people still think Cuba banned cryptocurrency. That’s not true. In fact, Cuba is one of the only two countries in the world that officially allows Bitcoin and other digital currencies as legal payment methods. The confusion comes from old headlines and misinformation. By 2021, Cuba didn’t crack down on crypto-it built a system to control it.
What Really Happened in 2021
On August 24, 2021, Cuba’s government published Resolution 215 in its Official Gazette. This wasn’t a ban. It was a rulebook. The Central Bank of Cuba was given the power to license companies that handle cryptocurrency. These companies had to follow strict anti-money laundering rules, verify their customers, and report suspicious activity. The government didn’t shut down crypto. It stepped in to manage it. Why? Because Cubans were already using Bitcoin and Ethereum to survive. U.S. sanctions had cut off access to PayPal, Western Union, and most international credit cards. By 2020, Western Union closed all its 400+ locations in Cuba. Families couldn’t send money home. People couldn’t buy medicine or electronics online. Crypto became the only way out.How Cubans Use Crypto Every Day
You won’t find crypto ATMs on every corner, but you’ll find people using it. An estimated 100,000 to 200,000 Cubans-about 1% to 2% of the population-use digital currencies regularly. Most use Bitcoin, Ethereum, or Avalanche. They don’t trade for profit. They use it to send money to relatives in Miami, buy food from international online stores, or pay for apps and services blocked by U.S. sanctions. One mother in Santiago de Cuba told a journalist she uses Bitcoin to receive payments from her son in Florida. Before, she waited weeks for Western Union transfers. Now, she gets money in minutes. Another man in Havana uses crypto to buy replacement parts for his car-parts he can’t get locally and can’t pay for with a U.S.-issued card. The internet isn’t perfect. Mobile data is expensive, and speeds are slow. But smartphone ownership has grown fast. And for many, crypto is the only reliable way to connect to the global economy.The U.S. Sanctions That Forced This Change
Cuba’s crypto policy isn’t about tech hype. It’s about survival. The U.S. embargo, in place since 1962, is one of the longest and strictest in modern history. Under the Cuban Assets Control Regulations (CACR), any transaction involving Cuban entities is frozen if it touches U.S. banks or systems. That means:- No PayPal accounts for Cubans
- No Amazon purchases with Cuban addresses
- No credit card payments processed through Visa or Mastercard in Cuba
- No international bank transfers unless they bypass U.S. financial networks
How the Government Keeps Control
Cuba didn’t go full libertarian. It created a tightly regulated system. To operate legally, crypto service providers must apply for a license from the Central Bank. Licenses are granted only if the business meets economic and legal criteria. The first licenses were valid for one year and had to be renewed. All licensed platforms must:- Verify customer identities (KYC)
- Report transactions over a certain amount
- Keep records for at least five years
- Prevent money laundering and terrorist financing
How Cuba Compares to Other Countries
China banned crypto trading and mining. El Salvador made Bitcoin legal tender. Russia walks a tightrope, allowing personal use but blocking institutional adoption. Cuba’s path is different. It didn’t choose ideology. It chose pragmatism. Unlike China, Cuba didn’t try to stop the tide. It built a dam. It lets water flow-but controls where it goes. This approach has attracted attention from other nations under sanctions. Iran, Venezuela, and North Korea have explored similar models. But Cuba is the only one that has made it work at scale.
What’s Next for Crypto in Cuba?
The Central Bank is still issuing licenses. More service providers are coming online. Internet infrastructure is improving slowly. Mobile data costs are dropping. Education efforts are starting in universities and tech hubs. Experts believe Cuba’s model could become a blueprint for other isolated economies. If the U.S. eases sanctions-even slightly-crypto use could explode. Right now, it’s a lifeline. In five years, it could become a pillar of the economy. But don’t expect Bitcoin to replace the peso. The government isn’t trying to overthrow its currency. It’s trying to give its people tools to survive the sanctions. And so far, it’s working.Why the Myth of a Ban Still Exists
Some media outlets still call it a prohibition. They say Cuba “cracked down” on crypto. But that’s outdated. The crackdown happened in 2020-when the government was still unsure what to do. By 2021, it had a plan. By 2025, it had hundreds of licensed providers and tens of thousands of active users. The myth persists because it’s easier to say “Cuba banned crypto” than to explain a complex, nuanced policy shaped by decades of economic war. But the truth is simpler: Cuba didn’t ban crypto. It made it legal-and then made sure it didn’t get out of control.Is cryptocurrency illegal in Cuba?
No, cryptocurrency is legal in Cuba. Since August 2021, the government has regulated digital currencies through Resolution 215. Citizens can legally use Bitcoin, Ethereum, and other cryptocurrencies to pay for goods and services, as long as they use licensed service providers.
Can I send Bitcoin to someone in Cuba?
Yes, you can send Bitcoin or other cryptocurrencies to someone in Cuba. Many Cubans rely on crypto remittances from family abroad because traditional services like Western Union and PayPal are blocked by U.S. sanctions. The recipient just needs a crypto wallet and access to a licensed exchange or peer-to-peer platform.
Does Cuba have its own cryptocurrency?
No, Cuba does not have a government-backed cryptocurrency like a CBDC. It allows private digital assets like Bitcoin and Ethereum but does not issue its own. All transactions must go through licensed third-party providers approved by the Central Bank of Cuba.
Why did Cuba allow crypto when other countries banned it?
Cuba allowed crypto because it had no choice. U.S. sanctions cut off access to global banking systems. Crypto became the only way for Cubans to receive remittances, buy essentials online, and participate in the digital economy. Rather than fight it, the government chose to regulate it to maintain control while helping its citizens survive.
Are crypto transactions taxed in Cuba?
There is no official public tax policy on cryptocurrency gains in Cuba as of 2025. The government’s focus has been on preventing money laundering and ensuring compliance, not collecting taxes on digital asset transactions. However, this could change as the market grows and regulatory frameworks evolve.
Can foreigners use crypto in Cuba?
Foreigners can use crypto in Cuba, but they must follow the same rules as locals. To make payments or convert crypto to local currency, they need to use a licensed Cuban service provider. Some businesses catering to tourists accept crypto, but it’s not widespread. Most transactions still happen through peer-to-peer channels or licensed exchanges.
What’s happening in Cuba isn’t about rebellion. It’s about adaptation. When the world shuts doors, people find windows. Cuba didn’t invent crypto. But it used it smarter than most. And that’s the real story.
