Bitcoin Beach: How a Salvadoran Town Became a Crypto Pioneer

El Zonte, a small coastal town in El Salvador, became the first real-world test for using Bitcoin in a local economy. The project began in 2019, initiated by economist Mike Peterson and community leader Roman Martinez, following an anonymous cryptocurrency donation. The goal was to create a circular economy where locals could earn and spend Bitcoin in their daily lives.

Initially, young people were paid in Bitcoin to clean beaches and rivers. As the pandemic hit the job market, the project expanded to include the entire community. El Salvador, which had adopted the US dollar in 2001 and had a largely unbanked population, offered a favorable environment for the experiment.

In 2021, President Nayib Bukele used El Zonte as a model to introduce Bitcoin as legal tender at the national level. Although the government reversed the policy in 2025, Bitcoin usage remains widespread in El Zonte.

Today, most shops, restaurants, and hotels in the town accept Bitcoin, and the project has inspired over 100 similar initiatives worldwide.