Cuba just did something it hasn’t done in 67 years: bet on the free market.

The country’s National Assembly unanimously approved a package of 176 economic reforms on June 18, 2026, marking the most significant structural shift in the Cuban economy since Fidel Castro’s revolution in 1959. Private banks, foreign investment in state enterprises, and dramatically expanded rights for private businesses are all on the table.

What the reforms actually do

The package, presented by Prime Minister Manuel Marrero, touches nearly every corner of Cuba’s centrally planned economy.

Private businesses can now hire more than 100 employees. Until recently, that was a hard ceiling. They can also own multiple enterprises.

Companies can engage in direct import and export activities without routing everything through a state intermediary.

Private banks are authorized for the first time. In a country where the state has controlled virtually all financial infrastructure since the early 1960s, this alone would qualify as a landmark reform.

Foreign investors can acquire stakes in state-run companies without being forced into mandatory joint ventures with the government.

The reforms were backed by Cuba’s Communist Party, and officials stated they were influenced by insights from the circle of former leader Raul Castro.

Why now, and why this drastic

Cuba’s economy has been in a slow-motion crisis for years. Chronic shortages of food, medicine, and basic goods have defined daily life. Rolling power blackouts have become routine. The country’s infrastructure is crumbling under the weight of decades of underinvestment and stringent US sanctions that have choked off access to global capital markets.

The administration of President Miguel Diaz-Canel had been hinting at reforms since around June 12, days before the formal announcement.

Cuba began loosening restrictions on private enterprise back in 2021, when it started allowing small and medium-sized businesses to operate more freely, including a cap on hiring more than 100 workers. The new package removes that cap.

The 176 measures target sectors including tourism, agriculture, real estate, and banking. The unanimous vote in the National Assembly signals that the entire political establishment appears aligned behind the shift.

The crypto angle

The Central Bank’s Resolution 215/2021 already permits the use of digital assets for payments, establishing a regulatory framework for virtual assets.

In March 2026, ten firms were granted licenses for cross-border payments using digital assets. Nine of those were private small and medium enterprises. In a country where US sanctions make traditional banking relationships with the outside world extremely difficult, crypto offers a workaround that doesn’t require permission from Washington.

What this means for investors

US sanctions remain in place, and the legal and regulatory environment is still evolving in real time.

The removal of mandatory joint venture requirements for foreign investors is the single most consequential change. Joint ventures in Cuba have historically meant the government retained majority control and decision-making power. Allowing direct equity stakes in state enterprises changes that calculus entirely.

The risks are substantial. Cuba’s legal system has no track record of protecting foreign investors. And the US embargo creates enormous compliance headaches for any American or dollar-denominated entity looking to participate.