US loosens internet restrictions on Cuba in bid to bolster private enterprise

WASHINGTON

The Biden administration announced Tuesday it is loosening restrictions on internet services in Cuba in what it is billing as an effort to bolster the communist island’s private sector.

The new amendments to the Cuban Assets Control Regulations broaden authorized internet service access to include authorizations for social media, video conferencing, e-gaming and e-learning, automated translation platforms, web maps, cloud computing, online payment and other services.

US firms can now provide the delisted services to independent private sector entrepreneurs, which the Biden administration is more broadly interpreting to include private sector businesses, private cooperatives and sole proprietorships of up to 100 people, as well as private farms.

Any business in which Cuban government officials, the military, intelligence or other government insiders have a role is not eligible for the services.

But qualifying entrepreneurs will notably now have access to the US banking sector, allowing them to establish and access US bank accounts to conduct authorized transactions.

"In an acute twist of irony, the island's communist government must now rely on private enterprise to provide food and basic services for its people. It's not an easy road for these entrepreneurs," a senior Biden administration official told reporters during a virtual briefing ahead of the formal announcement.

"The Cuban government's mismanagement of its economy has led to unparalleled high inflation, but because it is more nimble and efficient than the government, the private sector currently serves as a life preserver to the Cuban people without which they cannot stay afloat," he added.