While Cuba does not see large volumes of Bitcoin transactions, it is becoming a prime example of cryptocurrency use under sanctions and limited access to international payment systems. As a result, some transactions are shifting to P2P networks and messaging apps, forming elements of a post-bank economy.
ForkLog explores how the island, home to over 10 million people, navigates financial isolation and why authorities have begun legalizing cryptocurrencies for foreign trade.
Island in Darkness
On the evening of March 4, most of western Cuba lost power. The Antonio Guiteras thermal power plant, located about 100 km from Havana, was the first to experience an emergency shutdown. Within minutes, outages spread across the grid. Restoration took 16 hours.
Officials from the Ministry of Energy linked the blackout to the oil blockade imposed by the U.S.
Shortly after the arrest of Venezuelan President Nicolás Maduro on January 3 during a military operation, the Trump administration declared Cuba a "unique and extraordinary threat" to U.S. national security.
Washington tightened sanctions on Venezuela's oil sector and threatened tariffs on countries supplying fuel to Cuba, reducing regional supplies, including exports from Mexico.
Cuba requires about 110,000 barrels of fuel daily, but its own production does not exceed 40,000 barrels. Additionally, the country has completely depleted its stocks of diesel and fuel oil. The physical wear of generating facilities, compounded by a lack of available spare parts, must also be considered.
In the following weeks, the grid collapsed again, leading to a total collapse of the national energy system. By May, outages became commonplace, reaching up to 18–24 hours a day in some regions.
As of the end of May, available capacity stood at 1,175 MW against a demand of 2,713 MW.
Besides social consequences like disruptions in water supply and cold chain logistics, blackouts also impact financial infrastructure. The banking sector critically depends on stable electricity and communication: ATMs, payment terminals, and some digital services fail.
This fragmented operational mode has further shifted focus to informal channels and cryptocurrencies. Although digital assets had penetrated daily life in Cuba long before the energy system collapse, this was primarily due to chronic economic constraints and the gradual breakdown of traditional payment channels.
Financial Architecture
Military Conglomerate
A key player in the Cuban economy is the GAESA conglomerate, established by Raúl Castro in 1995, which is managed by the country's armed forces. Initially aimed at strengthening the defense sector financially, it has since evolved into a commercial empire.
Experts estimate that GAESA controls between 40% and 70% of the economy and 95% of the country's financial system, including one of the largest banks, Banco Financiero Internacional. Its structures encompass the hotel sector, retail, port infrastructure, currency operations, and a significant portion of import channels. According to some reports, the conglomerate accounts for about 34% of Cuba's total goods and services exports.
A NY Times investigation highlights that GAESA operates as a closed corporate structure with limited public reporting and minimal external transparency, with its activities largely controlled by the state.
The U.S. government suggests that the network's revenues exceed the state budget by more than three times and that it may control illegal assets worth up to $20 billion.
The Cuban embassy in the UK responded, stating that journalists confused currencies and inflated the amount by 24 times. They claimed that, according to basic local government accounting rules, figures in the document required conversion to pesos at the official rate (1:24), which the investigation authors did not account for.
The @MiamiHerald & @ngameztorres claim Cuba’s GAESA hoards $18B USD, pushing a sensationalist narrative to justify brutal US sanctions. Basic accounting dismantles this "bombshell." Let's look at their own leaked document. This is a masterclass in journalistic malpractice. 🧵 https://t.co/UIhXozD4Iw pic.twitter.com/NInRidHEFA
— Cuba in the UK (@EmbaCuba_UK) May 16, 2026
«Elementary accounting dismantles this “sensationalism.” Inventing a secret stash of $18 billion provides a convenient political pretext for tightening the very illegal sanctions that suffocate the Cuban population,» — stated embassy representatives.
Banking Troubles
After the 2021 currency reform, the Cuban government further centralized access to dollar liquidity. At that time, authorities abandoned the dual currency system and expanded the use of MLC — a special "freely convertible" currency unit pegged to the dollar.
State stores with scarce goods switched to transactions via MLC cards, and access to imports increasingly depended on currency or remittances from abroad. Consequently, a parallel dollar system emerged within the country.
The crisis accelerated in spring 2025 when Cuba effectively entered an unspoken banking moratorium: authorities restricted foreign companies from withdrawing dollar deposits from state banks. Simultaneously, the peso's unofficial market rate plummeted to around 510 CUP per dollar, and the country's GDP shrank by about 11% over the past five years.
Amid this concentration of financial control, any external restrictions, including U.S. sanctions against GAESA-linked entities, further tighten pressure on international banking channels and reduce opportunities for traditional cross-border transactions. As of November 2025, 93% of money transfers in Cuba were conducted through unofficial networks.
Cryptocurrencies have integrated into this scheme. Cuban entrepreneurs use them for payments to foreign suppliers, importing goods, and accessing dollar liquidity outside the traditional system.
For some residents, cryptocurrencies have become an alternative tool: they receive remittances from relatives, save money, and bypass banking operation restrictions.
It is nearly impossible to verify whether members of the political elite use cryptocurrencies. The country lacks a comprehensive public asset declaration system for officials, and a significant portion of financial flows from the state and military-linked structures remains opaque.
Regulation and the Real Market
Formally, cryptocurrencies are not banned in Cuba. In 2021, the central bank recognized the possibility of using virtual assets for "socio-economic purposes".
A regulatory decree defined them as a digital representation of value that can be sold or transferred digitally and used for payments or investments.
By 2022, the government began issuing one-year licenses to crypto service providers, with the possibility of extension. A key feature is the mandatory assessment of the economic and social significance of the business for the state.
Exchange, transfer, and storage services are only possible with assets approved by the central bank under specific permissions. Violations can incur fines of up to 50,000 CUP for individuals and up to 5 million CUP for legal entities.
The only known license holder is the Lithuania-registered company EBIORO UAB, founded in 2019 by Cuban emigrant Yulexi Matienzo Carcases.
Despite initial regulatory steps, the market has continued to develop primarily in a gray area. Its center has become Telegram channels, WhatsApp groups, and local P2P platforms like QvaPay and Heavenex.
The cryptocurrency exchange rate in Cuba is determined by actual transactions between users and depends on both global trends and local factors — currency shortages, sanctions, and high demand for dollar liquidity. Market participants rely on current buy and sell announcements, as well as the cash dollar and MLC rates.
On local P2P platforms, the exchange rate is usually more balanced due to the involvement of the Cuban diaspora and external remittances. In Telegram and WhatsApp communities, it is often less favorable for buyers: private intermediaries add a premium for speed, convenience, and access to liquidity. The asset's price can also vary significantly based on the transaction volume, payment method, and the counterparty's reputation.
The largest Cuban crypto communities on Telegram range from several hundred to nearly nine thousand participants.
P2P platforms partially mitigate risks through escrow services, while private channels and informal groups see higher fraud levels due to a lack of guarantees.
Cuban authorities have repeatedly warned about the risks of unregulated cryptocurrency use and pointed out their vulnerability to illegal schemes. The most notorious example of such a model was the Trust Investing financial pyramid, which spread through Telegram and social media in 2020–2021. According to available estimates, it involved up to 300,000 people, with most users losing access to their funds, and the total damage remains undetermined.
Life Outside Statistics
According to unofficial data, in 2022, the number of Cubans using cryptocurrencies ranged from 100,000 to 200,000. More recent estimates suggest that active market participants have decreased to 10,000.
In 2023, Cuba ranked 136th out of 155 in the Global Cryptocurrency Adoption Index by Chainalysis. However, it did not appear in subsequent years' rankings.
Assessing the true scale of the crypto economy is complicated by the fact that most transactions occur outside centralized exchanges and are hardly reflected in public statistics.
Chainalysis notes that for countries with currency restrictions, unstable banking systems, and high demand for dollar liquidity, digital assets are primarily of interest as infrastructure for cross-border transfers rather than as investment tools.
The main asset in the Cuban crypto economy is USDT. The preference for stablecoins is attributed to high inflation — as of April, the official annual rate was estimated at 14.73%, but actual figures may be significantly higher.
Source: National Statistics and Information Office of the Republic of Cuba.According to Chainalysis and Artemis, small transactions of "stable coins" have become the main driver of cryptocurrency use in countries with problematic financial infrastructure. A similar situation is observed in Iran, Venezuela, Lebanon, and African countries.
In 2025, the global volume of USDT payments under $1,000 reached $156 billion — primarily driven by remittances, P2P transactions, and everyday payments.
$156B of USDT payment transfers under $1,000 in 2025 🤯 pic.twitter.com/tVBleoKwd1
— Paolo Ardoino 🤖 (@paoloardoino) December 12, 2025
Business Shift
In March 2026, the Central Bank of Cuba issued the first licenses to companies for using cryptocurrencies for international payments. Nine representatives from small and medium-sized businesses and one joint venture in technology, transport, and gastronomy received permission. The licenses are valid for one year with the possibility of renewal.
All transactions must go through official virtual asset providers. Internal operations and speculative trading under this initiative are strictly prohibited.
Each company is required to disclose transaction volumes, the digital assets used, and the chain of intermediaries. The regulator reserves the right to revoke licenses for violations.
As for internal payments in Cuba, they largely remain in the gray area. Formally, businesses are required to obtain a central bank license to conduct commercial operations with cryptocurrencies, but in practice, many merchants operate without one. The state effectively turns a blind eye to such operations, especially for small volumes.
According to BTC Map, as of this writing, 54 locations in the country are marked as accepting cryptocurrencies, with a significant portion concentrated in Havana and aimed at the tourist sector. The stated payment methods reflect the declared possibility and do not guarantee actual payment methods.
Better Sun than ASIC
A significant mining infrastructure on the island is virtually non-existent: unstable electricity, voltage fluctuations, and internet outages make operating ASIC farms extremely risky and economically unfeasible.
However, following the March blackouts, discussions in the crypto community have intensified about how Bitcoin mining could theoretically be used to balance local energy grids based on renewable sources. In particular, Forbes highlighted models where miners could consume excess solar generation during low demand periods and shut down during overloads.
Simultaneously, Cuba is developing solar energy, largely with support from China, in an effort to reduce dependence on imported fuel and worn-out centralized grids. However, for now, the focus is more on stabilizing the country's basic energy supply than on creating a full-fledged cryptocurrency mining industry.
Crypto Within Crisis
What is forming in Cuba cannot be fully termed a crypto economy. It is more of a post-bank economy, where messaging apps partially take on the functions of financial institutions, and blackouts serve as a systemic limiter of transactional activity.
In these conditions, cryptocurrencies do not transform the country's economic model but integrate into the existing system of restrictions, compensating for the lack of access to international financial infrastructure. At the same time, the limited nature of government initiatives and structural problems prevent any transition to a sustainable alternative model.