El Zonte, a village in Salvador, has become a lively zone of Bitcoin operations. Its inhabitants not only buy and sell Bitcoins, but also use the cryptocurrency as a payment method.
Most local residents are not provided with banking services, they do not use cash and use Bitcoins for transactions instead. This became possible thanks to the Bitcoin Beach initiative by Michael Peterson, who lives in the village. The goal of the initiative is the creation of a sustainable Bitcoin-ecosystem.
The cryptocurrency in El Zonte is used to buy foodstuffs, payment of utilities, water supply system maintenance, and road construction. Grants on education are also paid in Bitcoins, as well as bus rides and having lunch in some of the local restaurants, Forbes reported.
The current economic crisis, caused by the COVID-19 pandemic, left many people in the village unemployed. In connection with this, the most affected families are receiving social aid in Bitcoin. Around 600 families are receiving $35 every three weeks, which allows them to cover their necessities.
The idea about the economy, based on Bitcoin, appeared after Peterson received anonymous donations for the residents of the village in the cryptocurrency. The majority of people were unable to open bank accounts, because they couldn’t comply with the requirements of the financial organizations.
The transition to Bitcoin-economy wasn’t without difficulties, as it was hard for elderly people to work with the new technologies. First, to adopt the cryptocurrency was the young, who quickly mastered the mechanisms of cryptocurrency payments. As of right now, the government of Salvador doesn`t interfere in the Bitcoin Beach project.
