Cuba's Growing Tech and Crypto Scene

U.S. Sanctions Drive European Companies Out of Cuba, Crippling Tourism and Remittances

Spanish hotel giants Meliá and Iberostar have pulled their management and branding from dozens of Cuban properties, citing an “evolving geopolitical, social, legal, and economic environment.” The move came just ahead of severe new U.S. penalties targeting foreign companies that do business with Cuban state entities, especially the military-run GAESA conglomerate. This exodus of European tourism operators cripples a key source of legal dollar inflows and deepens Cuba's economic isolation.

The tightening embargo has already forced French shipping giant CMA CGM and Germany's Hapag-Lloyd to suspend operations to and from Cuba. These companies account for an estimated 60 percent of Cuba's shipping traffic by volume.

• Meliá and Iberostar jointly operated dozens of resorts on Cuba's most prized beaches, now stripped of management and branding.
• The new U.S. sanctions target any foreign entity doing business with GAESA, the military conglomerate controlling much of Cuba's economy.
• Reduced tourism and shipping traffic shrink the flow of U.S. dollars, forcing Cubans to seek alternative financial channels.

With legal dollar inflows drying up, Cubans are increasingly turning to decentralized digital currency and mobile platforms to circumvent state controls and the embargo alike.

Cuban Entrepreneurs Adopt Mobile Technology as Internet Access Improves Despite Crisis

While the broader economy contracts, mobile internet in Cuba has steadily expanded. Public Wi-Fi hotspots and more affordable data plans have enabled a growing number of Cubans to connect. Entrepreneurs have seized on this connectivity to build businesses outside the state-controlled retail system.

WhatsApp and Telegram have become the de facto storefronts for independent vendors selling everything from food to electronics. Peer-to-peer mobile payment services like Transfermóvil allow instant transfers, but they remain tethered to a fragile banking infrastructure hobbled by sanctions.

• Mobile data penetration has grown sharply, with many Cubans accessing the internet primarily through smartphones.
• Entrepreneurs use messaging apps to market products, negotiate sales, and coordinate delivery — bypassing state store inventory shortages.
• Transfermóvil enables digital payments even in areas with limited brick-and-mortar banking, but its reliance on state-owned banks introduces friction.

These digital workarounds form the foundation for a more resilient private economy, but they are not immune to the political headwinds that have driven out European capital.

Cryptocurrency Becomes a Survival Tool for Ordinary Cubans Amid Dollar Shortage

With access to U.S. dollars severely restricted by the embargo, Cubans are turning to Bitcoin and stablecoins like USDT to preserve savings and receive remittances from abroad. Peer-to-peer trading platforms — including Binance P2P and local exchanges — have seen surging volumes as families seek a censorship-resistant channel for value transfer.

The U.S. embargo indirectly fuels crypto adoption by creating demand for decentralized, irreversible transactions that bypass both state and banking controls.

• Stablecoins pegged to the dollar offer a store of value immune to the inflation of the Cuban peso.
• Remittances sent via crypto avoid the steep fees and delays of traditional wire transfers through state banks.
• The government has neither embraced nor explicitly banned cryptocurrency, leaving a gray area that grassroots adoption exploits.

This grassroots crypto movement is a direct response to systemic economic pressure — not a top-down initiative. It reflects a pragmatic embrace of technology as a means of survival.

Key Takeaways

• The tightening U.S. embargo is accelerating the exodus of European tourism operators, worsening Cuba's economic isolation.
• Improved mobile internet infrastructure enables Cuban entrepreneurs to pivot to digital commerce.
• Cryptocurrency serves as a critical lifeline for remittances and savings, sidestepping state and banking controls.
• Cuba's tech and crypto scene is a grassroots response to systemic economic pressures, not a government-led initiative.
• Adoption faces barriers: limited internet reliability, U.S. sanctions on crypto firms, and regulatory risks from Cuban authorities.
• The trend positions Cuba as a potential testbed for crypto adoption under extreme economic sanctions.