GM Nostr! Here's a deep dive into the absurdity of Cuba's monetary system I did while writing HRF's financialfreedomreport.org In 2021, the Communist Party of Cuba forced thousands of Cubans to convert their savings into "Certificates of Deposit" (CDs). Four years later, they still can't access a cent. Here’s what happened🧵 For decades, Cuba had two currencies: 1. The CUC (Cuban Convertible Peso) – Used for buying essential goods and pegged to the USD. 2. The CUP (Cuban Peso) – What most Cubans were paid in, nearly worthless. The result? Cubans were paid in a currency with no value but forced to use a currency that was pegged to the dollar for basic purchases. This created an economic divide, with wages falling far behind the prices of even basic necessities. The CUC first came to be in 2004 when the Cuban government forbade the use of dollars (previously legal tender), forcing both Cubans and tourists alike to exchange them (and other foreign currencies) for Cuban Convertible Pesos (CUCs). For years, Cubans who had foreign currency—whether through remittances, salaries, or savings—had to convert it into Cuban Convertible Pesos (CUC), which was promised as pegged 1:1 with the US dollar. In 2021, however, Cuba’s government eliminated the CUC under the “Tarea Ordenamiento” reforms in what was dubbed “Day Zero.” The government claimed this would 'unify' the monetary system and simplify the economy. In reality, it was a desperate move to cover up years of mismanagement and foreign currency shortages. In other words, the regime printed way more CUCs than it had dollars to back them up. So, instead of receiving their dollars back, Cubans with CUCs were forced to choose between two options: 1. Convert to Cuban Pesos (CUP) at a 24:1 rate (black market rate was much higher). 2. Lock money in CDs, with the promise of getting USD back later when "liquidity allows." Many Cubans chose CDs, hoping to get their dollars back. But unbeknownst to Cubans, the details made them effectively worthless: ❌ No clear repayment timeline 📉 Near-zero interest (0.15%) 🚫 Non-transferable, except by inheritance Since the monetary union of the CUC and CUP in 2021, the peso (CUP) has gone into freefall: 📉 2021: Gov’t set exchange rate: 24 CUP per USD 📉 2022 Black market rate: 50 CUP per USD 📉 2023: 300 CUP per USD 📉 2024: 400+ CUP per USD Meanwhile, Cubans who chose to lock their savings in CDs still can’t access their increasingly devalued money. Banks refuse requests. The regime ignores complaints. And those who dissent—online or in person—risk government censorship or frozen accounts. Cubans are not happy: "They took our dollars and gave us a piece of paper. In any other country, this would be a crime." “No matter how you look at it, it’s nonsensical. What’s the point of having an account if you can’t touch even a dollar of the money deposited there?" The Cuban regime didn’t just mismanage the economy and currency, it robbed its own people under the guise of policy. By trapping citizens’ hard-earned savings, they made sure ordinary Cubans—not the government—paid the price of regime-induced financial devastation. If you enjoyed these insights, consider subscribing to HRF's Financial Freedom Report for more news and learn how #Bitcoin is helping alleviate the monetary struggles of citizens under authoritarian regimes.👇