The Republic of Cuba is suspending the use of the US dollar due to sanctions with US and foreign banks. The central bank of Cuba’s sanctions “stems from the constraints that the US sanctions creates for the national bank system.”
Cuba bans USD deposits, BCC tells tourists to ‘come with currency other than dollars’
Cuba, the island country where the Caribbean Sea, the Gulf of Mexico and the Atlantic Ocean meet, said this week the US dollar would be suspended in the country. The mandate comes from the country’s central bank and foreign tourists have been told to leave US dollars at home when traveling. Declaration was applied to an at round Table discussion which was broadcast on state-sponsored Cuban television.
“The decision to temporarily suspend deposits of US banknotes in the Cuban bank and financial system in view of the barriers created by the US sanctions for the national bank system to deposit US dollars collected in the country abroad, was taken,” said members of the Central Bank of Cuba (Banco Central de Cuba, BCC).
Yamile Bera Cyres, The BCC vice president explained during the roundtable that early in the leadership of the Trump administration, the US tightened its grip on the sanctions. The United States has had sanctions with Cuba since 1958, and the US has had issues with Cuba during the Eisenhower Presidency and the Kennedy Presidency as well. After the 2008 crisis, the US and Cuba were drawn to friendly terms during Obama’s presidency.
However, BCC Vice President Bera Cyres claims that issues have gotten worse since Trump and said that 24 foreign banks have stopped working with Cuba. Bera Cyres also said during the roundtable discussion that 95 foreign financial institutions reported violations to Cuba’s national banks doing business with counterparties. Bera Cyres added, “It is more difficult for Cuba to prepare international banking or financial institutions to receive, convert or process US currency into cash.”
“Those who are coming into the country during this time will have to come up with a currency other than the dollar,” said Francisco Mayobre Lens, BCC’s first vice president.
BCC Minister-President: ‘There is no other option’
Of course, after hearing about the USD ban in Cuba, members of the cryptocurrency community Wanted Cuba was most recently to adopt digital currencies like El Salvador did with bitcoin. “I like this [a] 50 year ban. This is really disappointing,” wrote one person on Reddit about Cuba’s situation with the US. “Will they take crypto now?” Another Redditor asked in the r/Cryptocurrency thread. Another crypto enthusiast answered the question and said:
I suspect they want to be the last Latin American country to do so.
The Minister-President of Cuba’s Central Bank, Marta Sabina Wilson González, explained during the round table discussion that Cuba had no choice but to make a decision. The minister elaborated, “We had no choice but to take this measure, which we are explaining in the round table, as we always do when it is a measure that affects people, who will understand that There is no other option.”
What do you think about Cuba restricting the use of US dollars in the country? Let us know what you think about this topic in the comment section below.
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