The Cuban government is promoting bank transactions and electronic payments as key strategies to boost the economy. However, in Holguín, small vendors are encountering significant challenges in adhering to these requirements.
According to a report by the provincial broadcaster Radio Angulo released this Saturday, small retailers are mandated to ensure payments through national currency transfers, a measure touted as a means to simplify consumer transactions.
The challenge arises when it's time to restock. Small businesses rely on large suppliers, importers, and entities linked to hubs like the Mariel Special Development Zone, whose payment methods do not align with the requirements imposed on small retailers.
While vendors receive payments in Cuban pesos (CUP), these suppliers demand foreign currency or cash. This leaves merchants with digital funds in the national banking system that cannot be directly used to purchase the goods necessary to keep their businesses stocked.
The difficulties are exacerbated by the liquidity constraints of the banking system. If a merchant attempts to withdraw cash from their deposited funds to operate or purchase goods where available, they face restrictions that hinder access to their own money or its conversion to the currency demanded by suppliers, as reported by the media outlet.
Emerging Inequities in the Marketplace
The situation highlights a disparity in access to commerce. Small vendors are strictly required to adhere to digital payments in Cuban pesos, while businesses and entities operating exclusively in foreign currency proliferate—a system inaccessible to those earning the average national wage.
The report also questions why oversight is not equally stringent for large companies, importers, and banking institutions when user difficulties arise.
The Need for Uniform Regulations
Radio Angulo suggested that successful bank transaction initiatives will require consistent application of rules across all participants in the commercial chain.
Under this perspective, payment demands, fiscal controls, and operational responsibilities should be enforced with equal rigor on both large importers and small retailers.
This month's crackdown is reportedly the harshest since mandatory banking was enforced in August 2023. In just the past few days in Central Havana, the government inspected 232 businesses, issued 363 fines, closed 15 establishments, and executed 11 forced sales in a single day.
In Sancti Spíritus, an operation resulted in over 200 fines and at least five closures this month. In Guantánamo, authorities warned there would be "no middle ground" for non-compliance.
Escalating Restrictions Amidst Digital Transaction Failures
As of three years since the mandate, only a mere 3.77% of transactions in Cuba are digital, despite more than 15,240 fines and 269 closures nationwide.
Meanwhile, the hard currency store system has expanded from 72 outlets in 2020 to over 85 locations, with more openings planned by 2026. These stores accept cash in dollars or international cards, but not Cuban pesos. Estimates suggest that between 80% and 90% of the population lacks real access to these establishments.
Since March, the Mariel Container Terminal began charging private micro, small, and medium enterprises (MSMEs) in dollars, while state companies continued billing in CUP.
The government's promised banking system falters as cash extraction "by the percentage," with commissions ranging from 35% to 50%, has become the only liquidity avenue for millions of Cubans.
In Santiago de Cuba, police detained individuals involved in this scheme in May, but the practice persists due to the lack of real alternatives.
The Central Bank attempted to course-correct with Resolution 74/2026, effective since July 20, which removed the rigid 5,000 CUP cap, reduced commissions, and promised faster accreditation.
Yet these reforms arrived at a time when the system was already collapsing, and the regime's response has been to intensify coercive pressure on the vulnerable instead of addressing structural causes.
Understanding Cuba's Economic Challenges
Why are small vendors in Cuba facing difficulties with the government's banking initiatives?
Small vendors are required to use national currency transfers for payments, but their suppliers demand foreign currency, creating a mismatch in the payment system.
What is the impact of currency-only stores on the Cuban population?
Currency-only stores are inaccessible to the majority of the population, who earn in Cuban pesos and cannot afford to shop where only foreign currency is accepted.