Cuba’s Crypto Revolution: Adoption Amid Government Restrictions

Key Takeaways

• Cuba became the second country to legalize Bitcoin and other digital assets in August 2021.
• The Cuban Central Bank (BCC) issues licenses, sets AML rules, and decides which tokens can be listed.
• Mining is legal under strict energy caps and must use renewable sources.
• Around 100,000‑200,000 Cubans (1‑2% of the population) use crypto for remittances, online shopping and global trade.
• Limited internet, sanctions and compliance hurdles remain, but the government is actively expanding infrastructure.

Why Cuba Turned to Crypto

For decades Cuba has been cut off from most Western financial services because of U.S. sanctions dating back to 1962.

When Western Union shut its 400+ Cuban locations in 2020, families lost a lifeline for sending money home. Traditional channels like PayPal or credit cards were already blocked, leaving an entire island scrambling for alternatives.

In that vacuum, digital currencies offered a way to bypass the bans, move value across borders and access online markets that were otherwise out of reach. The government recognized the economic necessity and, rather than trying to ban the technology, decided to regulate it.

Legal Framework: Resolution 215 and Beyond

In August 2021 the Cuban Central Bank (Banco Central de Cuba, BCC) published Resolution 215. The decree gave the BCC authority to regulate digital assets, issue licenses to crypto service providers, and define which tokens could be listed on local exchanges.

The 2024 amendment tightened anti‑money‑laundering (AML) requirements. All license applicants must pass a probity check by the General Directorate of Investigation of Financial Operations, disclose energy consumption plans, and adopt international cybersecurity standards.

Key points of the regulatory regime:

1. Only the BCC can approve a virtual‑asset service provider (VASP) license.
2. Licenses are granted based on “socio‑economic interest,” meaning projects must demonstrably benefit the Cuban economy.
3. Every licensed entity must file regular AML reports and cooperate with the BCC’s monitoring unit.
4. The BCC retains the right to add or remove tokens from approved lists without prior notice.

Licensing Process for Crypto Companies

Prospective VASPs submit a dossier that includes:

• Business plan outlining how the service will support remittances, e‑commerce or mining.
• Technical architecture and security audit results.
• Proof of clean provenance for all founding members.
• Energy usage forecast, especially for mining‑related projects.

The BCC evaluates each proposal against three criteria: legality (no breach of OFAC sanctions), opportunity (does the service fill a gap in the Cuban market?), and socio‑economic benefit (does it create jobs or improve access to foreign goods?).

Failure to comply results in immediate suspension and potential civil penalties. The stringent approach has attracted only serious operators, many of whom partner with international tech firms to meet the technical standards.

Crypto Mining: From Illicit to Legal

Mining was officially legalized in 2025. The government introduced a set of guidelines that focus on sustainability and security:

• Energy consumption caps - no single farm can exceed 5MW without special approval.
• Mandatory use of renewable sources; most farms are located near solar farms in Guantánamo or wind installations in Pinar del Río.
• Compliance with international cybersecurity standards (ISO‑27001) to prevent hacking.
• Periodic audits by the BCC’s technical division.

By 2024, three large‑scale farms were operational, producing an estimated 200TH/s combined. These farms not only generate Bitcoin but also export hash power to offshore pools, earning hard‑currency that can be funneled back into the Cuban economy through the regulated channels.

Adoption Numbers and Real‑World Use Cases

Estimates from the BCC’s 2024 financial report put active crypto users between 100,000 and 200,000 - roughly 1‑2% of the island’s 11million residents. That may sound small, but it represents rapid growth given that widespread mobile internet only arrived in 2022.

Top reasons Cubans turn to digital assets:

• Remittances: Families abroad send Bitcoin or USDT, which can be turned into local vouchers or used directly for online purchases.
• Online Shopping: Platforms that block Cuban IPs (Amazon, e‑bay) can be accessed via crypto‑based payment gateways.
• Investment & Savings: With hyperinflation eroding the Cuban peso, Bitcoin and Ethereum act as a store of value.
• Cross‑border Trade: Small exporters use crypto to invoice foreign buyers, sidestepping SWIFT delays.

Case study: Maria, a nurse in Havana, receives $300 a month from her sister in Miami via Bitcoin. She converts the crypto into a prepaid card approved by a local VASP and uses it to buy medicine that isn’t stocked in state pharmacies.

Operational Challenges

Even with a legal framework, adoption is hampered by three main hurdles:

1. Internet Infrastructure: Average broadband speed is 8Mbps, limiting smooth access to international exchanges.
2. Sanctions Compliance: International banks hesitate to process crypto‑related transfers involving Cuban entities for fear of breaching OFAC rules.
3. Exchange Access: Most global exchanges block Cuban IPs. The BCC is fostering a domestic exchange, but liquidity remains thin.

To mitigate these, the government signed MoUs with three European tech firms in 2024 to build satellite‑backed connectivity and improve local exchange depth.

Future Outlook: Scaling the Ecosystem

Looking ahead, the BCC’s 2025 roadmap aims to:

• Expand the licensing regime to cover decentralized finance (DeFi) platforms under strict AML oversight.
• Double renewable‑energy capacity for mining farms, targeting a 10MW aggregate limit by 2027.
• Launch a government‑backed stablecoin pegged to the Cuban peso, intended for local commerce.
• Partner with regional universities to offer blockchain certification programs.

If these plans materialize, Cuba could become a testbed for how sanctioned economies can responsibly harness crypto without falling into a regulatory gray zone.

How Cuba’s Model Stacks Up Against Other Nations

Bottom Line

Contrary to the headline “despite government restrictions,” Cuba’s experience shows that a state‑directed, compliance‑first approach can turn crypto into a lifeline rather than a loophole. The Cuban cryptocurrency adoption story is less about tech hype and more about pragmatic survival under sanctions.