The beach town that became a Bitcoin testbed

In 2019, a grassroots crypto project in El Salvador aimed to create the world's first Bitcoin-based local economy. It inspired national policy, sparked global attention and changed the lives of young locals. Today, in the quiet surf town of El Zonte – now nicknamed "Bitcoin Beach" – travellers can experience the experiment for themselves. The road to El Zonte is easy to miss – just a small turn off a bend, down a narrow paved street framed by thick shrubs and trees. A single sign points towardsla playaa kilometre away, where the beach is near-empty under the late afternoon sun, save for a local dog cooling off at the water's edge and a couple of surfers relaxing on loungers. Of all the places for a financial revolution to take root, El Zonte seems an unlikely candidate. But this isolated fishing town on El Salvador's Pacific coast, known for its year-round warm waters and pounding waves, is now globally recognised asBitcoin Beach: a rare, real-world testbed for cryptocurrency adoption. I arrived curious but sceptical. I'd heard stories of a "sustainable Bitcoin economy" where you could buy just about anything with the cryptocurrency. But how far could it really go, I wondered. Would it get me a hotel room or a meal for two? What about something as mundane as a bottle of water or a freshly cookedcornpupusafrom a street vendor? How about a cold beer on the beach? I soon found out at a weather-beaten beach bar, where the bartender didn't flinch when I held up my phone to pay for two lagers using Bitcoin. Without blinking, he reached for a separate payment machine. A few taps, a QR code popped up, and easy as that, the receipt flashed up with proof the experiment was real – an experiment I was now part of. For travellers, this is part of El Zonte's allure. Beyond the guidebook information about its beaches and excellent surfing conditions, it offers a chance to step into a social test case and witness firsthand how locals are navigating it. From a more practical standpoint, for those who already hold Bitcoin, using it can help avoid currency conversion losses. El Zonte's Bitcoin experiment began in 2019, led by local economist Mike Peterson and community leader Roman Martínez. At the time, Peterson was working with an NGO to support young people and steer them away from the country's notorious gang violence. An anonymous donation of Bitcoin sparked the idea to create a local circular economy. Young locals were paid in Bitcoin to clean beaches and rivers. When the pandemic hit and jobs disappeared, the project expanded to support the entire community. The conditions were ripe. "El Salvador had a unique aspect in that it didn't have its own currency after adopting the US dollar back in 2001," said Peterson. This provided a more open framework for Bitcoin because it wasn't competing with the country's own currency. At the same time, a large portion of the population remained unbanked, without access to traditional financial services. So, "to be able to bring in a payment network that let people have access to electronic payments for the first time made a lot of sense". One of the locals who embraced the initiative is 23-year-old Brian Flores, whom I met at Bitcoin Beach House, the team's headquarters in El Zonte. After joining as a teen, he now teaches the community – especially young people – how to use Bitcoin, and credits the project with opening up new opportunities. More like this: •The Central American region where people live longest •The bitcoin miners in rural Zambia •An eerie portal to the Maya underworld "Bitcoin Beach changed my life," he told me. "All the friends I had in school are either dead or in jail. I come from a really poor family. We just used to work the farms but when Bitcoin came to El Zonte I started working with them to see what was happening.  He's since travelled to Argentina, Spain and the Czech Republic as an educator, and is planning to visit Las Vegas next. For tourists, he explained, using the currency is a simple: download a wallet app (any can be used) and top it up with Bitcoin. "Then you're good to go." As the initiative grew, it caught the eye of newly elected President Nayib Bukele, who cited Bitcoin Beach as inspiration for his decision to make the currencylegal tenderin 2021 – the first country in the world to do so. Suddenly, Bitcoin wasn't just accepted in El Zonte but across El Salvador, and could be used to pay for everyting from utility bills and groceries to taxes. For travellers, this meant tours, restaurants and hotel rooms could all be paid for in Bitcoin too. "You guys [at Bitcoin Beach] demonstrated that this is not something just for rich people, it's for everybody,"Bukele told Petersenin 2021: "You're pioneers. You demonstrated a community can actually benefit from Bitcoin and now we're going to demonstrate it on a country-wide scale." Yet by early 2025, the government hadreversed its legal tender policyfollowing pressure from the International Monetary Fund. While the change was controversial, it has done little to alter life in El Zonte, where Bitcoin remains widely accepted. Peterson says the Bitcoin Beach initiative is spreading to other parts of the country and has inspired up to 100 similar Bitcoin projects worldwide. Walk through El Zonte today and Bitcoin branding is hard to miss. Large signs in signature Bitcoin orange are everywhere, while "Bitcoin accepted here" stickers appear in the windows of shops, hotels and restaurants. "We get quite a few people asking to pay with it," said a waitress atNan Tal, a fusion restaurant on the beachfront. "Particularly during peak season." Many are tourists like me, she added as I flashed my Bitcoin app to pay for my plate of quickly devoured crispy calamari and jalapeno aioli. Plan your trip: Getting there:The easiest way is to hire a car from San Salvador Airport (about 75 minutes). Bus, taxi and ride sharing options are also available, and some select surf schools and hotels run airport shuttles – contact them directly for availability. Where to stay:El Zonte has plenty of accommodation options for all budgets. The author stayed at Beach on the Rocks. Prices start at $65 (£48) per night. What to do:Take surfing lessons withPuro SurforEscela de Surf Los 3 Hermanod. Head to  the town of El Tunca for a night out (10-15 minutes via Uber. Use El Zonte as base to explore places like the Ruta de Las Flores (under two hours by car) or El Boquerón volcano (about one hour). Bitcoin tips:To make payments, download the Blink Bitcoin Wallet app. If you don't already have Bitcoin, you'll need to purchase some and transfer it to your wallet. Most places in El Zonte accept Bitcoin, but it's best to check with staff before paying. Others are none the wiser, like one surfer I spoke to from Germany. "I came for the waves," he said when I asked him if Bitcoin attracted him to El Zonte. He added that he had yet to use the currency. The hotel we were both staying at, however –Beach on the Rocks– is ramping up its support of Bitcoin. The owner, Omar, told me that while they are still setting up Bitcoin payments for their rooms, they hold Bitcoin conventions at the hotel. I asked Peterson what role Bitcoin has played in attracting tourists to the town. It's had a huge impact. The name is easy, it's something that's easy for people to remember. But it's attracted people in a few different ways," he said. He mentioned "core Bitcoiners" keen to connect with the community but also those people who would never have discovered El Zonte without the project. "Even the articles that were negative would put pictures of the beautiful beaches and talk about the lovely people. So, we had this huge influx of people into El Salvador and El Zonte." This interest has gone hand-in-hand with a broader boom in tourism to El Salvador, with the country seeing a 90% increase in international tourist arrivals between early 2019 and early 2024,according to UN Tourism statistics. Bukele's controversial crackdown on gang crime –  which began with a state of emergency in 2022 and the subsequent arrest of more than 84,000 people accused of having gang affiliations – has been credited with restoring safety. The US State Department's now ranks El Salvador among its safest travel destinations. But human rights groups,including Amnesty International, have criticised the mass arrests, citing concerns over unlawful detention. Back in El Zonte, however, Bitcoin offers a glimpse into how El Salvador is trying to redefine itself – not only for its citizens but for the outside world. Before leaving, I pulled out my phone for a final Bitcoin purchase: one last beer on the beach at dusk. I listened to the sound of the waves gently lapping the sand as the bartender scanned my QR code – yet another seamless transaction complete. -- If you liked this story,sign up for The Essential List newsletter– a handpicked selection of features, videos and can't-miss news, delivered to your inbox twice a week. For more Travel stories from the BBC, follow us onFacebook,XandInstagram.