Cuba Central Bank suspends the use of US dollar deposits in response to US sanctions.

Cuba announced on the 10th that it will suspend the acceptance of cash deposits in U.S. dollars nationwide starting on June 21st, due to stricter U.S. sanctions that limit Cuba's ability to use dollars abroad.

The President of the Central Bank of Cuba (BCC), Marta Sabina Wilson González, stated, "We have no choice but to take this measure." The First Vice President of the Central Bank of Cuba, Francisco Mayobre Lence, said that Cuba has requested tourists not to bring US dollars to the country as it will no longer be accepted. Tourists can choose to pay with cards or exchange foreign currencies.

In a statement, the Central Bank of Cuba pointed out that due to the US sanctions against foreign banks, it has become increasingly difficult to find international banks or financial institutions willing to accept, exchange, or handle US dollar cash, resulting in a "systemic obstacle to the national banking system." Some analysts suggest that Cuba's move is aimed at controlling the black market price of the US dollar, which has risen to more than twice the official exchange rate.

After news of the ban on US dollars surfaced, it sparked lively discussions in the Reddit cryptocurrency community. Many speculated whether Cuba would follow El Salvador in adopting cryptocurrencies. Some believe that Cuba will accelerate the adoption of cryptocurrencies to leverage against US economic sanctions, while others are skeptical due to Cuba's ongoing internet connectivity issues.

Since 1958, the US has imposed sanctions on Cuba. During Obama's presidency, there was a slight improvement in relations with Cuba. However, the Central Bank stated that relations deteriorated under the Trump administration, with 24 foreign banks ceasing to do business with Cuba.

Former Cuban political leader Raúl Castro had pushed for moderate economic reforms, allowing people to open restaurants, buy and sell homes and cars, and engaged in dialogue with the Obama administration, leading to the restoration of diplomatic relations and Obama's visit to Havana. However, the reform efforts faced domestic opposition and were halted.

In April of this year, Raúl Castro announced his retirement at the National Assembly and handed over the leadership of the ruling party to 60-year-old Miguel Diaz-Canel, the most powerful position in Cuba. Diaz-Canel will still have to confront challenges such as Cuba's economic stagnation and social unrest.

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