This Friday, the Cuban regime published a resolution in the Official Gazette of the Republic of Cuba, granting a license for the Lithuanian company EBIORO UAB to operate as a provider of virtual asset services, laying the groundwork for the integration of cryptocurrencies into the Cuban economy.
The government notified in the resolution that EBIORO UAB, located in Vilnius (Lithuania) and established on January 28, 2022, requested a license to operate in the national territory.
Although the regime described the company as a “Lithuanian nationality company,” the agency was founded by a Cuban.
According to the platform Okredo, Yulexi Matienzo Carcasés is listed as the director of EBIORO UAB, and the company has a capital of 148,630 euros.
The owner of EBIORO, allegedly a graduate of CUJAE and Delft University of Technology in the Netherlands, had announced the launch of his business in 2019.
The project, he said, had been conceived in 2016 due to his “frustration” with the international banking system when sending money to Cuba.
“Ebioro is a platform based on blockchain technology to reduce the cost of transactions to Cuba. Our main goal is to provide the entire Cuban community abroad with a global and unified platform for ALL types of payments to Cuba,” it promoted then.”
Emphasizing his platform, Matienzo Carcasés stated that it was the first mobile application that allowed Cubans abroad to buy cryptocurrencies directly with their credit cards in over 35 countries (including the United States) and to send a cryptocurrency transfer to anyone in Cuba who had the application installed, in approximately three seconds.
Facebook Capture / Yulexi Matienzo Carcases
As acknowledged in 2019, the use of cryptocurrencies for direct payments to Cuba still needed to “mature,” a process that EBIORO was “committed to.”
In the initial phase of the project, Matienzo Carcasés indicated that it would be possible to purchase cryptocurrencies directly from the wallet and even make a Cubacel recharge with the balance.
The Cuban continued promoting his application on social media since its launch; however, it is unclear how long he has been in contact with the Cuban regime to obtain the Central Bank license for his platform to operate in Cuba.
It has not been revealed whether this man has any other types of connections with Cuban government officials.
Matienzo is also linked to a company from the Netherlands, Sasa Holding BV, located at Zuider Stationsweg 13 in Bloemendaal.
The company, according to public data, operates in the financial holdings sector and has been registered since 2018 with the Chamber of Commerce.
The cryptocurrency business
Since 2022, the Central Bank of Cuba (BCC) had announced its decision to grant licenses to Cuban or foreign providers of cryptocurrency services on the island.
Based on that resolution, EBIORO UAB has now been granted the ability to conduct currency exchange and payment operations, including collecting, paying, developing, and managing digital platforms for these purposes.
It has also been permitted to exchange and manage the custody of virtual assets. Likewise, it will be able to manage instruments such as wallets and digital accounts on service platforms.
Amid the current crisis and following the sanctions that canceled the operating licenses of Orbit S.A. to receive remittances from the United States, the regime is betting on other alternatives to manage international transfers and attract dollars.
However, as the economist Pedro Monreal, has argued, these strategies do not address a basic component of the structural crisis: “a failed model of international specialization.”
Frequently Asked Questions about EBIORO UAB and Cryptocurrencies in Cuba
EBIORO UAB is a Lithuanian company authorized to operate cryptocurrencies in Cuba. It was established in Lithuania in 2022 and is led by the Cuban Yulexi Matienzo Carcasés. Its role is to act as a provider of virtual asset services on the island, allowing for currency exchanges, virtual asset management, and digital wallet management.
The license to EBIORO UAB lays the groundwork for the integration of cryptocurrencies into the Cuban economy. This measure aims to diversify and modernize the country’s financial system, providing alternatives for international transfers and currency capture, especially in a context of international sanctions and economic restrictions.
EBIORO UAB must comply with strict regulations regarding security, risk disclosure, and prevention of money laundering. This includes registration in the Registry of Obligated Subjects and the implementation of measures to combat fraud and cybersecurity. The company must also inform its clients about the volatility of virtual assets and the associated risks.
The Cuban government is seeking alternatives to manage international transfers due to sanctions and restrictions. Cryptocurrencies allow for circumventing some of these limitations, providing a means to attract foreign currency and conduct transactions in an adverse international context, especially following the suspension of remittances by Western Union and other entities.