Financial Restrictions and Cash Usage in Cuba: what actually matters to know

State-owned stores and institutions (e.g., Etecsa for SIM cards in Havana) often do not accept cash (USD, EUR, CUP) for major purchases, preferring bank cards. MIR cards may be accepted but success rates vary by the issuing bank and specific terminal. Private vendors and some state-sector entities in tourist areas (e.g., Varadero) are more likely to accept cash, especially USD, sometimes even informally (transactions 'off the books'). The unofficial exchange rate for USD to CUP can be tracked on sites like ElToque and is significantly higher than the official rate (e.g., 270 to 660 CUP per USD in recent times). It is highly recommended to carry a substantial amount of USD cash. For digital nomads or those with crypto, USDT can be exchanged for local currency with a slight premium (1:1 to 1:1.05), which is advantageous compared to other Latin American countries where a loss of 5% or more is common.

There are unconfirmed rumors about a ban on US dollar circulation, which could make it difficult for tourists. Small businesses might refuse to accept pesos due to rapid devaluation. Electricity outages are frequent, reportedly up to 15 hours per day in Havana. Officially, US dollars are not accepted in 'dollar stores' or most hotels; a local currency called MLC (obtained by exchanging cash dollars at banks) is used. However, some establishments reportedly still accept cash dollars, sometimes preferring it. It's advised for travelers to carry both USD and CUP and be prepared for currency complexities and potential restrictions.

State-run stores often require card payments, and even alternative cards like 'Mir' may have inconsistent acceptance. Frequent power outages disrupt electronic transactions. Many hotels do not accept cash. Obtaining local payment cards can be problematic due to personnel shortages. The availability of goods in state-run and tourist-oriented shops is limited, with high prices and often basic items. Private initiatives exist, but prices remain high. Currency exchange rates can be unfavorable. The situation is further complicated by external factors, including sanctions and import restrictions.

This impacts travelers significantly as many establishments, including state-run stores, operate exclusively on card payments. While MIR cards are an alternative, their acceptance can be inconsistent across different banks and locations. Power outages, which are frequent, render all payment terminals inoperable. In some cases, tourists may face difficulties acquiring local Cuban cards due to the unavailability of personnel at service points. This situation poses a risk of being unable to make payments even with cash.

Financial operations for tourists are now almost exclusively dependent on physical cash. Travelers are advised to carry sufficient cash as backup, as reliance on international card payment networks is unreliable or impossible due to US sanctions and local banking restrictions.

Consequently, the vast majority of private establishments and many state-owned ones operate exclusively on a cash-only basis, making card terminals an extremely rare sight.