A Cuban man named Camilo Velazco Montero took to social media to express his frustration after a small private enterprise, or mipyme, refused to accept a $100 U.S. bill simply because it was folded. Velazco shared a video on Facebook, displaying the bill and questioning the rationale behind the business's decision.
"It's folded. It's not torn, not dirty, not counterfeit. Just folded. These businesses don't want to take the money because it's folded," he remarked.
Velazco pointed out that bills often end up creased when stored in wallets or pockets, arguing that it is unreasonable for some establishments to demand cash in nearly pristine condition. With a sarcastic tone, he suggested that businesses seeking "smooth" bills should go directly to the mint to get freshly printed ones.
"If you need smooth money, please go to the mint and get it from there," he stated.
The post attracted numerous reactions from users who claimed to have experienced similar rejections from both private and state-run establishments. One commenter noted, "It's not just in private businesses, but in state stores as well." Another jokingly advised, "You need to laminate it, and soon you'll have to frame it."
Some users attempted to rationalize the practice by indicating that certain businesses prefer bills in good condition because they later use them for payments, bank deposits, or transactions abroad, where similar restrictions on the physical state of cash might apply.
The refusal to accept bills based on their physical state is not a new occurrence in Cuba. Back in November 2025, several private businesses stopped accepting cash dollars, and in 2026, there were reports of some establishments rejecting specific denominations of Cuban pesos.
In response to these incidents, the Central Bank of Cuba has warned that no establishment is allowed to arbitrarily choose which denominations to accept.
This debate unfolds amidst a growing reliance on cash within the Cuban economy. The U.S. dollar recently reached record highs on the informal market, while issues with electronic payments have kept physical money as a crucial means for many transactions.
In mid-September, the Cuban government introduced new regulations permitting private enterprises and other entities to accept foreign currency in cash and deposit it into foreign currency bank accounts, a move that has heightened the importance of handling dollars in daily economic activities.
Understanding Cash Rejection Practices in Cuba
Why are some businesses in Cuba rejecting folded bills?
Certain businesses in Cuba prefer bills in good condition because they may need to use them for payments, bank deposits, or transactions abroad, where similar restrictions on the physical state of cash might apply.
How has the reliance on cash impacted the Cuban economy?
The reliance on cash has increased due to the U.S. dollar reaching record highs on the informal market and persistent issues with electronic payments, making physical money a vital tool for transactions.
What actions has the Cuban government taken regarding currency handling?
The Cuban government has implemented regulations allowing businesses to accept foreign currency in cash and deposit it into foreign currency bank accounts, underscoring the significance of dollars in the economy.