Failed Banking Reforms in Pinar del Río: A System That Hinders More Than It Helps

The introduction of banking reforms in Pinar del Río was meant to simplify daily life, yet it has become a significant hurdle for workers, retirees, and small business owners. They struggle with empty ATMs, unreliable internet connections, and businesses that still demand cash payments. Instead of modernizing financial transactions, the system has complicated basic salary access and consumer needs.

An in-depth report by the official newspaper Guerrillero highlighted the daily collapse of the limited ATM network, resulting in long lines spilling onto streets and sidewalks. The infrastructure cannot keep up; banks fail to receive enough cash to consistently stock ATMs, and the prevalence of small denominations makes withdrawing modest amounts cumbersome. Additional cash registers and extended hours do not compensate for the cash shortage.

Meanwhile, digital payments face a twofold challenge: an aging population unfamiliar with technology and the refusal of many businesses to accept electronic transfers. State worker Raydelín Martínez shared with the newspaper his struggle, having waited in line for days to withdraw his 5,000 pesos salary, while also finding it difficult to make payments through online platforms.

“Sometimes there’s no power, preventing Enzona from opening; other times, stores prefer cash payments. It’s as if, on top of everything else, they’re making life harder,” Martínez explained. Many users report issues paying amounts over 1,500 pesos in some stores, a claim banks deny.

Widespread Confusion and Systemic Issues

Confusion abounds even among those attempting to comply with the rules. Customers like Francisco Argudín, 70, find it impossible to determine if they are depositing to a fiscal account, which affects their ability to receive benefits. Others, like Enrique González, encounter double charges when paying online without receiving refunds, only the option of taking another product.

Officials from the Banco Popular de Ahorro and Bandec admit the system's shortcomings. They claim “neither QR codes nor fiscal bank accounts have deposit limits; they can receive from 10 pesos to 10 million or more in a day," but acknowledge that power outages and data connectivity issues obstruct regular usage.

Out of over 270 radio bases in the province, 66% lack backup power, leading to network shutdowns and suspended mobile traffic during outages. Additionally, many businesses, including self-employed workers, small and medium enterprises, and non-agricultural cooperatives, insist on cash payments, citing difficulties accessing funds for operational expenses.

Enforcement and Resistance

Inspections reveal violations such as the use of personal accounts and the absence of QR codes, which can result in fines ranging from 16,000 to 36,000 pesos for self-employed individuals and small businesses, and from 24,000 to 60,000 pesos for cooperatives. The state attempts to maintain control with penalties, yet statistics reveal an inconvenient truth: only 10% to 12% of the 700,000 monthly transactions in Pinar del Río are digital. The goal of a more transparent and regulated system clashes with a cash culture that cannot be eradicated by decree.

For retirees, the situation is even more dire. Although banks claim to ensure cash payments, the conditions often do not allow it. They face endless waits at ATMs or stores that do not accept cards, particularly when they are most vulnerable to the enforced changes.

Banking Reforms and Economic Turmoil

The banking reforms have missed their mark, creating more problems than solutions. Calex Edilio González Chill, coordinator of programs and objectives for the Provincial Government in Pinar del Río, admitted, "Instead of making life easier, it has created one more problem... the primary goal was to enable the population to benefit from certain advantages, but unfortunately, it has been the opposite."

Meanwhile, Cubans remain trapped in a financial limbo: their digital salaries are largely useless in many stores; banks are cash-poor; and businesses are obstructing rather than aiding the transition. The clear outcome: after a month of work, not everyone can access their own money. A model intended to empower instead leaves people with less control and greater frustration.

Back in April, the official press in Matanzas also acknowledged the failure of banking initiatives in the western province, citing businesses evading fiscal control, unusable QR codes, and connectivity issues. In April 2024, the Cuban government admitted the banking reform process launched in August 2023 was a fiasco, as was the official exchange rate introduced for foreign currency as part of the “economic and monetary restructuring.”

Banking reforms in Cuba have been a constant source of debate and frustration. The measures faced strong resistance due to the lack of technological infrastructure and distrust in the state financial system. Cubans have reacted with outrage, pointing out that the reforms not only restrict cash access but also complicate commerce and basic services. The lack of operational ATMs, long bank lines, and enforced electronic payments in a country plagued by connectivity issues are among the most frequently reported problems.

Despite the challenges, in June 2024, the leader Miguel Díaz-Canel pushed for the banking of agricultural markets, a measure that met with further resistance, especially from producers who rely on cash for daily transactions. The proposal aimed to digitalize food market payments, but farmers warned that the Cuban banking system was unprepared to handle agricultural transactions without affecting product availability.

By late 2024 and early 2025, banking reforms had become a significant factor in Cuba's liquidity crisis. In municipalities like Jovellanos, workers faced restrictions on cash withdrawals, causing long queues and deep dissatisfaction. In Santiago de Cuba, even vandalism against bank branches was reported, reflecting the desperation of a population forced to grapple with a collapsed financial system.

Despite government efforts to portray banking reforms as an economic solution, the street-level reality painted a picture of uncertainty and discontent. The program's failure not only impacted daily life but also affected the exchange rate, increasing the cost of foreign currency access and worsening the island's economic crisis.