The birth of the first Cuban Bitcoin transaction record has triggered speculation about the development of Bitcoin in Cuba

This week, the first Bitcoin transaction was recorded in Cuba. Although there has been a lot of attention paid to Bitcoin development in Cuba, this is the first public trade operation and it is also valued due to the recent improvement of relations between the United States and Cuba.

For more than 50 years, the United States and Cuba have had little cooperation, but recently after the United States and Cuba officially restored diplomatic relations, Cuba began to implement an open policy. The Obama administration has also relaxed economic restrictions for the Cuban people and Cuban Americans on the island in many recent reforms. Congress may also lift the trade embargo and travel restrictions on the island of Cuba.

Fernando Villar, founder of BitcoinCuba, told CCN: “This shows that the Cuban Bitcoin community now has the possibility to receive Bitcoin through Nauta: Cuba’s public wi-fi. This will hopefully showcase the wonders of Bitcoin to the Cuban people and push Cuba into the Bitcoin ecosystem.” The idea came naturally.

Villar said:

“I was on a trip to visit family and friends on the island of Cuba. A few days before the trip, I asked Chris Groshong (CEO of CoinStructive) if you could send me some Bitcoin from the US to Cuba via the new public wi-fi network, wouldn’t that be great? And then it happened.”

BitcoinCuba believes Bitcoin has great potential in Cuba, but Villar remains cautious because the island nation has many historical obstacles to overcome.

Villar said:

“The future of Bitcoin in Cuba is bright, but it will take time and effort. Cubans are only connected through public Wi-Fi networks, which cost $2 per hour when the average Cuban monthly salary is $20. But what is certain is that the future applications of Wi-Fi networks will be incredible.”

Villar told CNN:

“Cubans are connecting their smartphones, laptops and tablets to Wi-Fi networks to stay connected with friends and family and to the world outside the island. It was only a matter of time before currency transactions were made possible through these networks.”

Villar believes that the Castro regime’s repression does not include technology and innovation. Under the country’s capital controls, Bitcoin can make life easier for many people.

Villar noted:

"The dual currency system that the Cuban people now use makes it difficult for them to compete in the global market. There are not many exchanges where people can buy Cuban pesos or convertible pesos, so their currency is essentially worthless outside the island."

Villar continued:

“We strongly feel that the use of Bitcoin can help Cuban entrepreneurs sell their products or services simply and efficiently around the world. These entrepreneurs will become drivers of Cuba’s economic development.”

Villar uses the Airbitz wallet to conduct transactions. The wallet won first place in a startup competition at this year's Inside Bitcoin conference in New York City and recently received a $450,000 investment from Los Angeles venture capital firm Block26. The Airbitz wallet is not only known for its convenient design, but also integrates a detailed directory of Bitcoin-partnered stores, so mobile users can locate a store and spend Bitcoin on the same app. Airbitz's decentralized design has made it the most popular Bitcoin wallet on the market.

"The wonderful thing is that we just have to create the best product we can, and Airbitz is doing very well in Cuba," Airbitz CEO Paul Puey told CNN.

I thought it was some cool, creative PR stunt we pulled that attracted people, but it was actually the number of people deciding to use Airbitz that grew organically.

The Airbitz team recognizes the importance of the work done by BitcoinCuba.

Puey said:

“From what we know, Cubans don’t know much about Bitcoin. Lack of knowledge is the biggest problem, and we are happy that organizations like BitCoincuba.org are making great efforts to educate their citizens about Bitcoin.”

Cuba still has a centralized planned economy. Many predict that it will take a long time for Cuba to promote private enterprise and implement political reforms. Some people don't think so. Cubans are still divided on many issues. Will the island encourage foreign investment and the development of the private economy, or stick to the socialist model that it claims "provides better education and health care than most Latin American countries"? Whatever path Cuba chooses, Bitcoin will not wait.

Puey said:

“For a country so obsessed with a series of capital controls, trade restrictions, and even restrictions on digital information, the Cuban people will soon discover the great benefits of the financial freedom that Bitcoin can bring. Cubans will love the fact that Bitcoin can allow them to trade freely, easily conduct transactions online, and send and receive money around the world.”

This time we have a borderless currency that eliminates the borders between countries.

Villar started trading Bitcoin in late 2013 after reading an article about it on Reddit. In February 2015, he founded BitcoinCuba.org because he believed Bitcoin and blockchain could greatly improve the lives of the Cuban people. As a Cuban, Villar has many friends and family who want to send money to Cuba. Villar said, "There is no better, cheaper, faster way to send money than through Bitcoin."

According to Villar, in Cuba, and more specifically in Havana, Bitcoin is not necessarily a viable prospect. Therefore, BitcoinCuba has partnered with CoinStructive to spread educational materials on Bitcoin and blockchain, including videos, in Spain to increase awareness of digital currencies.

“We hope that in the near future we will be able to hold a Bitcoin and blockchain seminar in Havana to promote digital currencies and technology,” he said.