The Central Bank of Cuba (BCC) has unveiled a pilot initiative aimed at facilitating payments to retirees and pensioners at shopping centers across four Havana municipalities. This is intended to alleviate the overwhelming demand for cash at bank branches.
During a press conference, Alberto Javier Quiñones Betancourt, the BCC's Vice President, shared that this trial will be executed in collaboration with the local governments of Old Havana, Playa, Plaza de la Revolución, and La Lisa, where organizational logistics are being established for the new payment system.
"Presently, approximately 90% of individuals visiting the bank branches are seeking cash withdrawals. One way to reduce this overwhelming demand is by increasing cash payments," Quiñones Betancourt explained.
This issue is widespread across the nation, with branches in Matanzas experiencing four consecutive days without service, highlighting the severe banking collapse on the island.
Addressing Cash Payments in Workplaces
The BCC is also focusing on delivering cash salary payments to workplaces with a high concentration of employees, prioritizing healthcare institutions and other essential sectors.
Nonetheless, retirees and pensioners remain among the hardest-hit groups in this crisis, regularly facing long lines and cash shortages.
Introduction of New Currency Notes
The situation is compounded by the recent introduction of new 2,000 and 5,000 Cuban peso notes, which has been met with ironic reactions from the public, with many joking that now their entire salary fits on a single bill.
Quiñones Betancourt also acknowledged that "digital payments in retail have not been effectively adopted or implemented."
Critics argue that this pilot program is a superficial solution that fails to address the underlying causes of the crisis. Meanwhile, in other provinces, the situation has escalated to the point where police have been deployed in Cienfuegos to manage the queues outside banks.
Understanding the Cash Crisis in Cuba
Why is the BCC implementing payments at shopping centers?
The BCC's initiative to pay retirees at shopping centers aims to reduce the heavy demand for cash at bank branches, which are overwhelmed due to the high number of people seeking withdrawals.
What municipalities are involved in this pilot plan?
The municipalities involved in the pilot plan are Old Havana, Playa, Plaza de la Revolución, and La Lisa, where the new payment system is being organized.
How are new currency notes affecting the population?
The introduction of new 2,000 and 5,000 peso notes has been met with sarcasm by the public, as many point out that their entire salaries can now fit on a single bill, highlighting the ongoing economic struggles.