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September 23, 2020
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Bitcoin is being used as main currency in El Salvador village

Project in El Salvador is giving real use case for Bitcoin

Although for many real use cases Bitcoin is a store of value, in the village of El Zonte in El Salvador, the main cryptocurrency is being used as money for daily transactions.

According to Forbes, in El Zonte most people do not have a bank and the village does not use money. Instead, daily transactions are carried out using Bitcoin, thanks to the Bitcoin Beach project, launched by Michael Peterson, a California native who settled there.

In El Zonte BTC is being used to pay for almost everything: residents can use cryptocurrency to buy food, pay utility bills, receive salaries and even issue educational grants to students who graduate from college. At the local school, bus rides, lunch and snacks are paid for in Bitcoin.

As part of the program’s objective, which is to create a sustainable Bitcoin ecosystem, there are work programs to employ young people to repair damaged water systems and repair roads. They are paid in BTC for their work, which helps to add more cryptocurrencies to the local economy.

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The health crisis caused by the coronavirus pandemic has seen many in the village lose their jobs. Bitcoin is helping them to recover, as the initiative has so far helped 600 families receive $ 35 in BTC every three weeks to help cover basic expenses.

“Bitcoin payday – As the economy was devastated by the shutdown, most people lost their jobs. We were able to put people to work in the community and everyone gets paid at the #BTC that they can spend on local businesses, helping to rebuild local businesses. ”

As such a high number of Bitcoin transactions can result in many fees, residents use the “Wallet of Satoshi” app, which allows them to carry out transactions through the tier two scaling solution, the Lightning Network.

As it was not easy to introduce Bitcoin to the residents, those responsible for the project started teaching young people first, so that they could teach the elderly in the village, according to the report.

Peterson thought of a Bitcoin-based economy after someone approached him after making a donation in BTC to help residents in El Zonte, as most of them were unable to open a bank account because they did not meet the requirements for that.

The government of El Salvador has not yet publicly interfered with the Bitcoin Beach project and it is not clear whether it will support or repress it.

Source: CryptoGlobe

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