Cubans Seek Alternatives after Western Union Closes

By Cubaencuentro

Screenshot CGTN

HAVANA TIMES – Cubans are looking for new alternatives so that remittances can continue to flow from the US to Cuba via cryptocurrencies or debit cards, after Western Union closed its offices on Monday. This has been one of the hardest blows for families on both sides of the Florida Strait, reported Reuters.

In late October, US president Donald Trump announced that remittances could no longer be sent to Cuba via the world’s #1 money transfer company if it continued to work through a Cuban military owned company. The decision suspended transactions of the US company to the island.

Cuban finance company FINCIMEX, which belongs to the military, has been Western Union’s main business partner in Cuba for over 20 years. Millions of Cubans in the US and other parts of the world have used Western Union to provide financial aid to their families.

“Using bitcoin to send money from one place to another is the solution because you don’t need a bank. It’s a decentralized economy (…) it’s super-fast and there isn’t any commission,” said Erich Garcia, a 34-year-old YouTuber who is pushing for cryptocurrency transfers to Cuba.

Remittances are one of Cuba’s greatest sources of dollars, after service exports and tourism.  The economy is already suffering severe shortages of food, medicines, and other essentials. A contributing factor is the effect of the six-decade US trade embargo on the island.

WU was channeling an average of US $2.4 million a day to Cuban families

Western Union said it sent $2.4 million USD daily to Cuba totaling between “900 million-1.5 billion USD” per year. According to the US-Cuba Trade and Economic Council, remittances in 2019 figured at around 5.3 billion USD.

“Transactions are becoming more expensive (…) and slower, but they are being completed. Now, cryptocurrencies are being used (…), the variants are unimaginable,” economist Omar Everleny told Reuters. He mentioned the “mules”, an informal channel for people who collect cash money and distribute it on the island.

Another option is VaCuba, a company based in Florida with no legal relation to state-led companies that process remittances. They can top up debit cards issued by Cuban banks used for shopping at the state’s dollar only stores. This is part of a government strategy to inject dollars into the national economy.

Trump’s Government has taken more drastic measures against Cuba that contrast significantly with his Democrat predecessor Barack Obama’s flexible strategy. However, the new president-elect, Joe Biden, said in his campaign that he would reverse these policies.

Read more from Cuba here on Havana Times.


7 thoughts on “Cubans Seek Alternatives after Western Union Closes

  • December 5, 2020 at 9:36 am
    Permalink

    Sounds like a great idea Moncada. Since, after 61 years in power, the government companies are unable to produce enough basic food and hygiene products for the population, a new round of confiscations could give them some money to import a little rice from Vietnam. Of course when they finish spending the results of the confiscations they’ll be back in the same boat. Likewise, the US would have more reason to harden the embargo even more. Guess who pays the price?

  • December 5, 2020 at 5:37 am
    Permalink

    I do agree with Donald Jackson and Curt ! Curt, you probably now that many Cuban-Americans have businesses in Cuba, usually in connection with R b&b ! And of course, they usually are opposed to the Cuban regime but they don’t care making money in Cuba with foreign tourists. They get their money outside Cuba (someone from a foreing country sends money to a person living in the States or elsewhere outside Cuba) but obviously their businesses take advantage of the Cuban insfrastructures, airports, roads, transport, food, water supplies, anti-mosquitoes programmes… ! Cuba should confiscate all sorts of businesses for those who do not spend at least 6 months / year on Cuban Island ! And confiscate all goods of those who have been taking advantage of that situation for ages !

  • November 30, 2020 at 10:36 am
    Permalink

    I agree 100% with Curt’s comment. Cubans in Miami voted for drump, yet are upset they cannot send money to relatives on the island. You cannot have it both ways. Drump is a stain on history, which will soon be wiped away.
    President Biden will take over from where the great president OBAMA left off….Aiding and helping the amazing people of the great nation of CUBA.
    My wife and I have visited this island nation 22 times in the last 7 years. We have found the Cuban people to be amongst the nicest, most grateful people this world knows.
    They are ALWAYS first to send medical aid to hot spots around the world (I know, the gov’t gets $ for this), however they always step up when aid is needed.
    President Biden will ensure they are treated with the respect they deserve. Drump will be remembered as the child in chief, a reality president at best.
    My wife and I look forward to our 23rd visit to see our CUBAN FAMILY, and friends.

  • November 30, 2020 at 3:38 am
    Permalink

    What about Canadian banks? I see Cdn. banks in many countries including many in the Caribbean. I have accounts in USD in my Canadian bank in Canada that I keep USD in for any needs in USD and my Cdn. account for my needs at home in Canada. A large percentage of tourism in Cuba is from Canada. From Cdn. seaports ship Cdn. made goods to Cuba as they may be able to escape the pirates masquerading as US navy.

  • November 29, 2020 at 6:16 am
    Permalink

    For now AIS is working. There are two cards. One is for CUC (which are highly devalued and may soon disappear) and the other AIS-MLC (which is the same as AIS-USD) and can be used for shopping in the army’s dollar stores. If the person wants cash they only get the CUC.

  • November 28, 2020 at 10:04 pm
    Permalink

    How about AIS ? Does it work ?

  • November 28, 2020 at 7:52 pm
    Permalink

    If the Miami Cubans are so upset that they can’t send money to their families that are still in Cuba, then why did they overwhelmingly vote for Trump, who him and his buddy Scumarquito make it more difficult to send remittances to Cuba. Makes you really wonder!

Leave a Reply

Your email address will not be published. Required fields are marked *