Cuba operates a dual currency system that shapes every financial interaction. The Cuban peso (CUP) functions as the domestic currency used by residents for state salaries, subsidized goods, and local services. The freely convertible currency (MLC, moneda libremente convertible) exists primarily as a digital unit backed by US dollars or euros for specific stores selling imported goods and electronics. Until 2021, the convertible peso (CUC) circulated alongside CUP at a roughly 24:1 ratio, but the government eliminated CUC in a unification attempt that immediately triggered severe inflation. Tourists encounter primarily CUP in street markets, private restaurants (paladares), casa particular accommodations, and local transportation, while state-run hotels, organized tours, and car rentals quote prices in US dollars or euros. Exchange rates fluctuate significantly between official channels and informal markets, with the official rate hovering near 120 CUP per USD as of 2024 while informal rates reach 200-250 CUP per USD depending on location and demand. This disparity creates confusion when locals quote prices in CUP and travelers mentally calculate using the official rate, discovering later they overpaid by double.
Cash dominates Cuban commerce more completely than nearly any accessible destination. Credit and debit cards issued by US banks face blanket prohibition under the embargo regulations continuously updated by the Office of Foreign Assets Control. Cards from Canadian, European, Mexican, or other non-US financial institutions function at some but not all terminals, with Visa experiencing broader rejection than Mastercard due to Visa's US corporate domicile creating processing complications. The state telecommunications company ETECSA operates most functional ATMs, concentrated in Havana, Varadero, Santiago de Cuba, and Trinidad, but machines frequently run empty of cash for days or weeks, particularly after weekend tourist arrivals or before major holidays when demand spikes. Daily withdrawal limits rarely exceed 1,500-2,000 CUP or the equivalent in convertible currency, forcing travelers planning extended stays to visit multiple machines across several days. Transaction fees typically reach 3-5 percent through the issuing bank plus Cuba's mandatory 10 percent penalty on US dollar conversions specifically, incentivizing travelers to carry euros or Canadian dollars for better effective rates. The penalty applies to cash exchange and card transactions denominated in dollars, making euro-denominated cards slightly advantageous for the minority of terminals accepting foreign plastic.
Travelers arriving in Cuba must carry sufficient cash for their entire stay given ATM unreliability and card rejection rates exceeding 40 percent even with non-US cards. Exchange houses called CADECAs (Casas de Cambio) operate in provincial capitals and major tourist zones, offering official rates that track government-set valuations updated sporadically rather than market forces. Banks like Banco Metropolitano and Banco de Crédito y Comercio also exchange currency during limited weekday hours, typically 8:00 AM to 3:00 PM Monday through Friday with Saturday closures standard outside Havana. Hotels exchange currency at their reception desks but apply rates 5-8 percent less favorable than CADECAs, effectively charging a convenience premium that compounds when travelers exchange repeatedly in small amounts. The informal market operates openly on streets near tourist sites, with jineteros (hustlers) offering rates 50-80 percent above official but carrying risks of counterfeit bills or short-changing through rapid sleight-of-hand counting. Cuban law prohibits informal currency exchange with penalties including confiscation and fines, though enforcement focuses primarily on Cuban nationals rather than tourists who claim ignorance.
Counterfeit bills circulate widely in denominations above 500 CUP and in all convertible currency, requiring travelers to examine watermarks, security threads, and color-shifting ink before accepting change. The 1,000 CUP note introduced in 2015 features José Martí on blue-green paper with a watermark visible when held to light and a security strip reading "BC CC" under ultraviolet exposure. Taxi drivers and street vendors sometimes refuse large bills entirely, claiming inability to make change but often actually suspecting forgery or hoping tourists simply tip the excess rather than wait. Carrying mixed denominations including 50, 100, and 200 CUP notes prevents situations where a 20 CUP taxi ride from a 1,000 note becomes "impossible" and the driver suggests rounding to 100. State stores and established paladares handle large bills routinely, making them useful exchange points where a small purchase converts a 1,000 note into spendable smaller currency.
Internet access in Cuba operates through ETECSA's monopoly infrastructure built primarily after 2015 when the government began expanding public connectivity. WiFi parks exist in central plazas of every provincial capital and major tourist town, marked by crowds of Cubans on phones and identified through ETECSA signage or simply by clustering users. Nauta WiFi requires purchase of scratch-off cards sold at ETECSA offices and some hotels in 1-hour (1.50 CUC equivalent, approximately 1.50 USD) and 5-hour (7.50 CUC equivalent) denominations, with prices occasionally adjusted in CUP terms as currency valuations shift. Lines at ETECSA offices extend 30-60 minutes during peak afternoon hours when Cubans finish work shifts and tourists hunt for cards simultaneously. The cards print a unique username and password under scratch-off coating that activates only after connecting to the Nauta network and entering credentials through a captive portal. Each card allows one concurrent session, with time counting down only while actively connected, so users can log out and resume later until hours exhaust. Connection speeds average 1-3 Mbps download in optimal conditions, dropping to under 500 Kbps when 50-plus users share a single access point during evening peak periods from 7:00 to 10:00 PM.
Hotels in the three-star and above categories offer WiFi in lobbies and sometimes rooms, either included in accommodation rates or sold as separate access codes at premium prices reaching double the ETECSA card rates. Hotel Nacional de Cuba in Havana charges guests approximately 6 CUC per hour for in-room access as of recent reports, while lobby access comes free for guests but requires purchasing cards as a non-guest. Casa particular owners increasingly install residential internet connections that allow sharing with guests, though speeds rarely exceed 2 Mbps and reliability falters during peak hours when neighborhood bandwidth saturates. Mobile data service launched in December 2018 through ETECSA's 3G and limited 4G networks, requiring a Cuban SIM card purchased at ETECSA offices with passport presentation. Tourist SIM cards cost approximately 10 CUC (10 USD equivalent) including 1 GB of data plus small voice allowances, with additional data purchased in 500 MB (5 CUC), 1 GB (10 CUC), or 2.5 GB (20 CUC) packages that expire after 30 days. Coverage reaches Havana, Santiago de Cuba, Varadero, Trinidad, Cienfuegos, and other cities reliably but degrades significantly in rural areas including much of Pinar del Río province and mountain regions like the Sierra Maestra.
Cellular voice and SMS services work throughout Cuba for basic Nokia-era phones but smartphones experience network congestion that delays messages by minutes or hours during high-traffic periods. International calls through ETECSA cost approximately 0.60-1.50 USD per minute to North America and Europe, while data roaming for travelers keeping home-country SIM cards active runs 10-20 USD per megabyte through most carriers, making accidental background data sync financially catastrophic. Turning off cellular data and relying exclusively on WiFi prevents bill shock, though Cuba's limited connectivity means accepting days without reliable email or messaging access. Voice over IP services like WhatsApp, Skype, and FaceTime function over WiFi but experience blocking or severe throttling during politically sensitive periods, with reports of intermittent VPN blocking as government authorities test filtering capabilities similar to systems in China or Iran.