Bitcoin was created to become a monetary system that exists outside the control of third parties, such as governments and banks. It is also a solution for unbanked people to maintain an account that stores value, and can transfer that value to others on a peer to peer basis.
And while this is a long-term vision for the first cryptocurrency, in a rural village in El Salvador, BTC is already replacing the affected economy and providing a much-needed solution for unbanked citizens residing in an area throughout the coast called Bitcoin Beach.
Currently, all the nations of the world are struggling financially, as the coronavirus has caused a complete shutdown of economic production due to shutdown conditions in an attempt to reduce the impact of the outbreak.
Large economic superpowers, such as the United States and China, are affected, but they are the cash-strapped regions where unbanked citizens are common and run out of a monetary system they can trust.
On a rural beach located along the coast of the South American nation, El Salvador exists a town now called Bitcoin Beach, where locals rely almost exclusively on Bitcoin to transact and obtain essential items like groceries.
Real world #Bitcoin transaction in mobile store 15 seconds. Quicker than cash (by the time you give change) and definitely quicker than Credit card. Rural village in El SALVADOR selling out of a van to people banks don’t want to serve. Forget buying coffee w / BTC. This is real pic.twitter.com/YOOo1mL6Hv
– Bitcoin Beach (@Bitcoinbeach) April 27, 2020
In a video shared by the village's official Twitter account, which promotes the adoption of the leading cryptocurrency by market capitalization, villagers can be seen buying eggs through a contactless mobile app. This is ideal and even recommended by the Wolrd Health Organization as a way to avoid cash during the outbreak.
However, these mobile payments are made in Bitcoin, not through bank accounts, Venmo or other options.
With the coronavirus impacting even further in the economy worldwide, and more specifically, in El Salvador, Bitcoin is showing its power as a monetary solution that can exist without a physical form.
Over the past month alone, more than 5 BTCs have been distributed to local villagers, helping local businesses stay in business by selling products to the more than 350 families benefiting from BTC transfers.
Bitcoin was born out of the last crisis and is being used to help the unbanked and most vulnerable get thru the current one pic.twitter.com/irjT7n8y7g
– Bitcoin Beach (@Bitcoinbeach) April 23, 2020
Bitcoin was born from the last great economic crisis, and it already shows how important the cryptocurrency is during the current one. Bitcoin can not only provide a solution for the unbanked, even if all other traditional banks crash, it is also inflation resistant and a contactless payment method.
As smaller economies collapse under the pressure of the economic crisis, Bitcoin could continue to demonstrate its value by serving as a solution for the unbanked, wherever they reside.