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 towards la playa a 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 as Bitcoin 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 cooked corn pupusa from 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........

© BBC