Zero cash for you! Cuban dictatorship announces it will stop printing paper currency

Lauzan’s take on Castro, Inc.’s Zero Cash initiative

From our Bureau of Socialist Voodoo Economics

Cuba’s cash shortage — caused by rampant inflation, as well as lack of paper, ink, and the funds needed to purchase these two items — has forced Castro, Inc. to announce a “Zero Cash” initiative that will radically alter the way Cubans pay for everything.

This initiative seems intended to cripple the black market, which has been an essential feature of the Cuban economy ever since Castro, Inc. took over the island.

Zero Cash means that all financial transactions will have to be electronic, which also means that they will have to be funneled through Castro, Inc.’s banks. Yes, Mildred, this means that Castro, Inc. will have an even greater stranglehold on goods and services, as well as on the self-employed cuentapropistas and on remittances sent to Cubans from relatives in “the diaspora.”

Meanwhile, the value of the Cuban peso keeps shrinking vis-a-vis the US dollar, the euro, and other foreign currencies. And Castro, Inc. — the employer of the vast majority of Cubans — refuses to raise salaries.

Socialist paradise. If this scheme works — and there are many reasons to doubt that it will — Che Guevara’s fevered dream of a moneyless economy will have finally come true, with a vengeance.

Loosely translated from Periodico Cubano

The president of the Central Bank of Cuba (BCC), Joaquín Alonso, hinted that the country will not print more money in cash and that is why he launched the banking program and the Zero Cash campaign in an accelerated manner.

According to their statements at the Round Table on Monday, August 7, the transition in six months towards almost all operations through electronic means will allow that “the currency used in the manufacture of physical currency can be used for other priorities of the country”.

Carlos Miguel Pérez Reyes, a deputy to the National Assembly of People’s Power (ANPP), rebuked Cuban President Miguel Díaz-Canel on Twitter about the new measures of the Central Bank of Cuba (BCC) that intends to execute an accelerated banking of economic actors.

Pérez, who was elected by the Playa municipality, and in the last session of the ANPP made headlines for his statements about the low salaries in the country that are not enough for a piece of cheese, now asks the executive branch to “explain clearly how the gradualness of bankarization is implemented”.

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