Hello, friends. Today I want to share with you some news that I have just learned. It turns out that the Cuban government has launched a new financial product, which it has baptized with the name of Classic Card, and which will start to be used from today, January 24. But, I am not here to echo this news, as you can find it in many of the digital platforms. My intention is to talk to you about the novelty of this card and the possible repercussions it could have on our economy, and especially on the pocket of Cubans.
A few years ago, the government set up a whole network of stores where you can only buy with cards denominated in freely convertible currency (MLC), a Cuban digital currency equivalent to the U.S. dollar, which I have already referred to on other occasions. This was created with the intention of capturing as much foreign currency as possible, since every penny had to go through the banks to acquire that digital currency, the only one allowed to buy products in those stores.
What brings us this Classic Card is that, in addition to being nominated in USD, it will also be accepted in those stores, as well as in a new network of US dollar fuel servicenters, created as of this year. At first glance, compared to the existing cards, there does not seem to be many changes, as the USD and MLC have the same commercial value in theory. But what is really interesting is the repercussions behind this.
It is clear that the economy is turning more towards the dollar every day. The government seeks to collect every last cent in circulation, encouraging the population to purchase products more and more with dollars, euros and other foreign currencies. Meanwhile, Cubans' salaries are increasingly depressed, affected by inflation and the harsh measures implemented in 2024. And people continue to be paid in Cuban pesos (CUP), a currency that has lost so much value that what was equivalent to 10 USD in 2021 today does not even amount to 1 USD.
It is difficult to understand the whole monetary tangle in Cuba, especially when talking about two national currencies in circulation. But the most curious thing about all this is that the currency with which the people receive their payment, legally, cannot be used to buy this virtual currency in any bank or exchange house, because the government simply does not sell it.
What are they forcing Cubans who do not receive remittances to do? We are becoming more and more dependent on foreign currency and the black market. Maybe I am wrong, but this new Classic Card and the change of servicenters from local currency to is more than tangible evidence. Furthermore, if you wish to withdrawal cash from these cards at any time, the form of payment is in (cup) and at the price imposed by the government, which is currently almost one third lower than the value in the informal market. Well, the scam continues: the same dog with a different collar.
How complicated the life of the Cuban is, and it seems that it will continue to be more complicated. This approach of the government to capture foreign currency while depressing wages in CUP creates an economic disparity that directly affects the population. The complexity of the Cuban monetary system and restrictions present additional challenges, making the financial life of Cubans even more complicated. I personally do not see any way out, and this Classic Card is just adding fuel to the fire.
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Original text in Spanish: Translated and formatted with Hive Translator by @noakmilo.
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