Cuba Overhauls Payment System, Removes Cash Caps and Issues High‑Denomination Banknotes

Cuba’s Central Bank announced a comprehensive overhaul of the island’s payment system. The package removes the rigid 5,000 CUP cap on cash transactions between economic actors and replaces it with a flexible, client‑by‑client arrangement based on income, deposit volume and digital‑payment adoption. New 2,000 CUP and 5,000 CUP banknotes entered circulation to ease cash shortages, while electronic‑transaction limits were raised to 2.5 million CUP per client.

The reform also cuts merchant fees for online payments, offers a 4 % rebate to consumers using digital channels, and provides a 2 % bonus to merchants that accept online payments, up to a set ceiling. Over 80 % of salaries and pensions are already paid via cards, intensifying demand for cash; the new measures aim to channel transactions toward digital platforms and improve liquidity for businesses and retirees. The changes take effect on July 20 (in some reports noted as August 1) under Resolution 74/2026, as presented by Central Bank president Juana Lilia Delgado Portal.