A Cuban $10 peso coin: bimetallic coins proposed for circulation due to cash shortages

10-peso coins could begin circulating in Cuba. The proposal, published in the official press, calls for using high-denomination metal coins to alleviate the cash shortage in banks.

In a country where obtaining physical cash has become almost impossible, this option appears to be a possible immediate response.

The idea has not been officially announced by the Central Bank, but it is already being publicly discussed as a "practical" alternative to a financial system that fails to guarantee the basics: that people can withdraw their salaries or pensions.

For many, it sounds logical. Coins last longer than bills, orcupless space, they do not break or get wet, and are almost impossible to counterfeit.

The newspaper Victoria, from the Isle of Youth, was the one who brought the issue to the table. There, he directly raised the possibility of minting coins of 10 or even more, as a solution to the "unnerving current situation" with cash.

It is mentioned that many people have large amounts stored in their homes, and that they would be willing to redeem them if they had access to coins that orcupin less physical volume.

Avoiding the real problem: lack of trust

The reasoning seems practical, but it completely misses the root causes of the crisis. The Cuban banking system has collapsed. Inflation has destroyed the value of the peso. People don't trust banks. And ATMs are empty or broken most of the time.

The comment in Victoria He cites Venezuela as an example, where coins of up to 1 bolivars are in circulation, to justify a similar solution.

He also recalls two Cuban precedents: a five-dollar coin CUC with the face of Che Guevara issued in 1999, and the current five-peso bill with the image of Antonio Maceo, in circulation since 2016.

But beyond these symbolic precedents, the economic reality is very different. In Cuba, there is no backing or liquidity. Issuing new currencies without addressing the root causes of the problem is, at the very least, a cosmetic change.

More coins, but not more value

Economist Pavel Vidal of Colombia's Javeriana University sums it up this way: "The government continues to issue money without having the dollars to back it up."

And remember that the current highest denomination bill—1 pesos—is worth just three dollars at the informal exchange rate. There's no productive incentive behind the new issues.

Furthermore, the mandatory banking system imposed by the government has failed. Transfers are failing. Businesses either don't accept digital payments or charge unjustified surcharges.

The platforms are overloaded or offline. And, amidst this chaos, most people prefer cash, even if there's no way to get it.

Soaring inflation has made people reluctant to keep money in banks. The peso is worthless, and with each passing day, it's worth less. Prices are rising. Pensions aren't enough. 39% of retirees live on the bare minimum: 1 pesos. A package of powdered milk costs up to 528. A liter of cooking oil, 1.

Real life does not fit in a coin

The cash shortage isn't a technical problem. It's a reflection of an economy without a foundation. A system where salaries don't cover the basics, and where the state blames the private sector for the crisis instead of revising its model.

President Miguel Díaz-Canel has blamed self-employed workers for withdrawing too much cash from ATMs. But they are also victims of a system that offers them no other safe and fast way to collect, pay, or reinvest. The lack of trust is total.

Meanwhile, the peso continues to fall, and most people survive as best they can. In this scenario, thinking that a 10-peso coin can alleviate the situation is, at best, illusory. It's not a question of what form money takes, but whether it actually exists. And in Cuba, money in all its forms is scarce.