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US President Joe Biden (Photo: AP)

Biden wants to restart Cuban remittances

US President Joe Biden (Photo: AP)

Cryptonews.com reports that the Joe Biden-led US Administration is seeking new means of increasing the flow of remittances to the island of Cuba, indicating on November 5 that the Government is reviewing recommendations made by the Treasury Department and State Department.

A Reuters report said that Biden wants to allow Cuban-Americans to send money to families on the island while reducing the possibility of cash flowing into Government coffers.

US dollar notes (Photo: Daily Express)

Biden has instructed aides to develop a policy that is “tough on the regime and soft on the Cuban people”, the report stated.

Former US President Donald Trump had put in place strict limits on remittances after his predecessor, Barack Obama, had made funds flow easier.

Cryptonews reported that an estimated 10,000 Cubans used bitcoin and altcoins, including ethereum and dogecoin, to skirt around US sanctions.

President Barack Obama (right) and Cuban President Raúl Castro shook hands at the start of their meeting at the United Nations General Assembly. (Photo: Kevin Lamarque/Reuters)

The site states that Cubans overseas use BitRemesas, a crypto exchange, “to transfer money to families in Cuba through a middleman, converting the fiat currency into cryptocurrency, which middlemen in Cuba then bid on and pay for in cash to the sellers’ family members in Cuba. The middleman gets a commission fee from the exchange, and trading platform BitRemesas takes a percentage as well.”

Cryptonews indicated that, in the last decade, Cubans have received nearly US$30 billion in cash remittances, 90 per cent coming from the US.

It said that, using BitRemesas, remittances have continued to flow and that Cubans also have turned to digital currency to make purchases online, as well as to invest and trade.