El Salvador is home to a surprising town named Berlín, located about two hours from the bustling capital. Nestled in the mountains, Berlín boasts a population of approximately 20,000 residents and is equipped with banks, law firms, shops, bars, restaurants, hotels, and a thriving healthcare system. However, what sets this mid-sized city apart is its remarkable embrace of Bitcoin, making it one of the largest Bitcoin circular economies globally.
A Bitcoin-Driven Local Economy
As you stroll through the vibrant streets of Berlín, it becomes evident that local businesses are wholeheartedly embracing Bitcoin (BTC) payments. From fresh fruit vendors to motorcycle repair shops, the community has integrated the cryptocurrency into daily transactions, allowing residents to manage nearly all expenses using Bitcoin. Unlike other tourist hotspots like El Zonte, known as Bitcoin Beach, Berlín remains relatively under the radar, with a small expat community. What is truly remarkable is the increasing participation of Salvadorans in using Bitcoin for their everyday purchases.
The Pioneering Spirit of Berlín
In 2021, President Nayib Bukele declared Bitcoin as legal tender in El Salvador, igniting a wave of expectations. With over 70% of the population lacking access to banking services, Bitcoin was seen as a potential lifeline for many, especially those working abroad who relied on remittances. However, the anticipated widespread adoption of Bitcoin did not come to fruition, with a staggering 88% of Salvadorans reportedly not using the cryptocurrency by 2023.
Yet, Berlín tells a different story. Located west of the Tecapa volcano, this picturesque town is witnessing a grassroots movement fueled by local enthusiasm and innovation.
The Heart of the Community: Berlín’s Bitcoin Center
At the core of Berlín lies the Bitcoin Community Center, a vibrant hub for residents and visitors alike. This welcoming space features a cafeteria, classrooms, podcast recording facilities, and a garden, serving as a social gathering spot for discussions, projects, and educational opportunities. Pierre Bonbury, a Canadian expat and unofficial tour guide of the center, describes it as a loose structure where anyone can contribute ideas for businesses, training, or social events.
The center proudly displays maps showcasing over 150 businesses that accept Bitcoin, accounting for roughly 25% of Berlín’s commercial establishments. The momentum is growing, with locals actively seeking out the center to learn more about Bitcoin and its benefits. Educational initiatives, including Bitcoin 101 classes and informal training sessions, empower residents and business owners alike.
Building a Community Around Bitcoin
Patricia Rosales, a lifelong resident and main administrator of the center, shares her personal journey with Bitcoin. After returning to Berlín from San Salvador in 2014, she struggled to find fulfilling work until she discovered the potential of Bitcoin. Today, she takes pride in seeing her son, now 11, effortlessly navigate Bitcoin ATMs. Rosales, alongside the dedicated volunteers at the center, has been instrumental in fostering a community spirit centered around Bitcoin.
Evelyn Lemus and Gerardo Linares, key figures behind the initiative, recognized the need for change in Berlín. They were driven by a desire to create a Bitcoin circular economy, similar to El Zonte, and found the perfect setting in the town’s natural beauty and community eagerness for new ideas.
Overcoming Challenges and Fostering Trust
The journey to establish Bitcoin as part of Berlín’s economy has not been without its challenges. Many Salvadorans initially associated Bitcoin with government initiatives and were hesitant to engage with it. The poorly received Chivo wallet further complicated matters. However, as the community focused on social projects—such as cleaning streets and repainting parks—the trust between Bitcoin advocates and locals began to blossom.
Initially, the only Bitcoin circulating in Berlín came from the spending habits of Lemus and Linares. However, as interest grew and foreigners began to visit, the local economy started to thrive. Lemus expresses her satisfaction with the type of tourism attracted to Berlín, emphasizing that visitors are genuinely curious about the community rather than seeking a party atmosphere.
A Legacy of Resilience and Community
Berlín’s history is deeply intertwined with El Salvador’s tumultuous past. During the Salvadoran Civil War, the town witnessed significant violence, uniting its residents and fostering strong community bonds. This solidarity has allowed Berlín to resist the influence of gangs that plagued other regions of the country.
Many residents, such as local lawyer Marisol Reyes, recognize the positive impact of Bitcoin on the community. With increased economic activity and growing interest from foreigners, Berlín is experiencing a revitalization. Some property owners, however, are misinterpreting the Bitcoin boom, raising prices under the assumption that all newcomers are investors.
The Spirit of Innovation and Collaboration
Berlín is also home to a unique blend of expats and locals, united by the principles of community and collaboration. At The Standard, a rustic hostel run on Bitcoin donations, visitors and residents share stories and ideas in a relaxed atmosphere. As Tim, the hostel operator, notes, the relationships within the town often take precedence over monetary considerations.
The sentiment resonates with Bonbury, who highlights the importance of community values over traditional Bitcoin maximalism. In Berlín, the focus is on building connections and fostering a supportive environment, distinguishing it from many other crypto-oriented spaces.
An Evolving Future
As Berlín continues to grow as a Bitcoin hub, its residents remain optimistic about its potential. The town has become a beacon of hope for those seeking alternative ways to transact and build a future without the constraints of traditional banking systems. In the words of Lemus, “Bitcoin City already exists; it’s called Berlín.” This town stands as a testament to the power of community-driven initiatives and the transformative potential of cryptocurrency in everyday life.
