Central Bank of Cuba reviews the pre-revolution shift from metallic circulation to silver-backed banknotes

The Central Bank of Cuba has published a historical review, in the second part of its "Memories" series on pre-revolutionary Cuban currency, outlining how Cuba moved from a system dominated by metal coins toward paper money backed initially by silver and later by foreign exchange and gold. The note presents this as part of the broader evolution from a period in which multiple foreign currencies circulated in Cuba and the absence of a national monetary system created distortions. The review highlights that Decree Law 93 of March 22, 1934 ordered the minting of 10 million one-peso silver pieces not for circulation but to back the issuance of silver certificate banknotes in denominations from 1 to 50 pesos, with 100 pesos added later. It says silver continued to circulate physically, while banknotes became the more practical medium and, under a 1942 law, also gained backing in U.S. dollars and later coined gold and gold bars. Gold had already been withdrawn from physical circulation on May 22, 1934, while remaining an ideal gold standard measure for value and note backing. The note also recalls that the silver certificates were demonetized by Decree 734 of March 6, 1953. The publication further reviews the creation of the National Bank of Cuba by the law of December 23, 1948 as the republic's credit and issuing institution, and its first banknote issuance on April 27, 1950. It notes the inclusion of a 10,000 peso banknote, later withdrawn, a 25% minimum reserve requirement in gold and foreign exchange under the bank's 1950 statutes, and the printing in 1953 of Cuba's first commemorative banknote marking the centenary of José Martí's birth.