US enables online payment system for private entrepreneurs in Cuba

(CNN) — Joe Biden’s government decided to enable the US online payment system for private entrepreneurs in Cuba, as high-ranking administration officials announced this Tuesday.

The policy change will allow independent private sector entrepreneurs to import food, equipment and other goods into Cuba, officials said, adding that it will also facilitate remittances to Cuba and help curb irregular migration from the island.

“The government is now fully implementing its May 2022 commitments to the Cuban people. We believe that the development of an independent and entrepreneurial private sector in Cuba is fully aligned with our values ​​(and) is the best hope for generating economic growth and jobs in Cuba,” a senior Biden administration official said. “And the growth of this sector is consistent with the president’s orientation to implement measures that benefit the Cuban people while also draining the Cuban government of resources.”

In 2022, the Biden administration announced a series of policy changes aimed at supporting the Cuban people, including the reinstatement of the Cuban Family Reunification Permit Program (CFRP) and increased consular services and visa processing.

The Treasury Department takes this step by amending rules governing Cuban assets.

Cuba’s national capital, also known as Havana Capital, on January 22. (Credit: Juancho Torres/Anadolu/Getty Images/File)

The announcement comes nearly 6 months before the US presidential election and could have political implications for how Biden approaches Cuba going forward, given that he lost Florida to Donald Trump in the 2020 election, with Trump repeatedly saying Biden would turn the US into a “socialist country” if he won, a message that resonated with Cuban Americans.

A second senior administration official said the Cuban government’s “mismanagement of the economy has led to unprecedented inflation,” but the private sector serves as a “lifesaver” for the Cuban people. There are more than 11,000 private companies registered in Cuba that could benefit from the changes being introduced.

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

The changes do not include any entities that include members of the Cuban Communist Party, members of the Cuban National Assembly, Cuban military officers or certain propagandists from the regime’s ministries and personnel, officials said.