Based on the number of merchants now accepting Bitcoin in Berlin, you might think this article is about the German capital. Instead, it's about a small, picturesque mountain town in El Salvador with a population of 20,000.
How more than 100 merchants accepted Bitcoin in a 6-month period is an interesting story of perseverance, passion, and belief in Bitcoin. It is also the story of a region whose residents were proud of their beautiful city. The city's population may be much larger in Germany, but lesser-known Berlin has far more Bitcoin users flocking there daily than its more famous counterpart.
Magic internet money
It all started with Gerardo Linares and his girlfriend Evelyn Lemos who were working as digital nomads in El Salvador for American companies for 10 years before they discovered Bitcoin. They are both ES citizens and first heard about Bitcoin when the country designated Bitcoin as legal tender in June 2021.
Like many of their compatriots, they were curious about Bitcoin after the announcement and began going to meetups in San Salvador and El Zonte to learn more about this magical Internet money. Like many others, they downloaded the Chivo wallet and amassed $30 worth of bitcoin in September 2021 when the law went into effect. The more they learn about this new global digital cash network that allows you to be your own “central bank,” the more they will like it.
They noticed that having Bitcoin as legal tender in their country attracted many outside visitors and tourists who were Bitcoin users to their country, but very few indigenous people were adopting Bitcoin outside of Zonte and San Salvador. They wanted to change that, so they quit their digital jobs and began a journey that led to them settling in Berlin, a small mountain town about two hours east of San Salvador.
Share the Bitcoin Gospel
After learning more about Bitcoin's impact and the opportunities it provides to local communities, they wanted other El Salvadorans to understand Bitcoin as well. In the early stages of their journey, they traveled to many small towns and villages in El Salvador and never missed an opportunity to educate students in local schools who wanted to learn about Bitcoin. They eventually teamed up with Mi Primer Bitcoin, a Bitcoin education company that started in El Salvador. As Corey Klipsten, CEO of Swan Bitcoin, has said for years, “educating people about bitcoin means marketing bitcoin.”
When I asked how many cities they had visited in the country, Gerardo said “21.” I'm not sure he caught the irony in his answer to my question since many Bitcoin users consider 21 a private number. One of the places where they gave lessons on Bitcoin was in Berlin. They eventually decided to start their circular economy development efforts in this mountain city because city officials took so much pride in their community and were eager to attract tourists to the area.
Anytime you want people to adopt a new technology, the first few early adopters are the hardest, and Berlin was no exception. Initially, the two were able to onboard 17 traders through several one-on-one conversations and tutoring. These early merchants in Berlin were open to this new rail of payment [lightning network] Because they want more tourism. In addition, another advantage they had in Berlin was that most merchants and shopkeepers were too small to have employees, which meant they could talk directly to the decision maker right away. There were no employees standing in their way as “middlemen”. They also had the added advantage of Bitcoin being legal tender in their country. After the initial wave of 17 merchants, more locals became involved in recruiting fellow shopkeepers. Gerardo and Evelyn were quick to credit local residents with the increase in adoptions. However, this was not just a success because of Bitcoin. They organized community-supported clean-up projects that transformed the area and made it more attractive to locals and tourists alike.
Many merchants and shop owners in Berlin had heard of Bitcoin and most were aware of the success in attracting tourists to El Zonte, a small surf town located 30 minutes outside of San Salvador and about 3 hours from Berlin. Another advantage of the shops in Berlin is that they only accepted cash (El Salvador stopped issuing its own currency in 2001, making the US dollar its legal currency) and had no way to accept digital payments, which meant that tourists were less likely to visit.
Challenges and solutions
Some have even had a Chivo wallet since Bitcoin was first launched because this wallet was required to receive $30 worth of Bitcoin from the government. However, they quickly discovered that Chivo Wallet defaulted to generating a QR code for USD and not Bitcoin. There was a way to accept Bitcoin into a merchant's Chivo wallet but it was not the default and it was not easy to use.
They needed to make an attempt to get the Chivo wallet to accept Bitcoin which made it less than ideal. Most of the stores are small and do not yet accept any form of electronic payment. Gerardo and Evelyn refer to Bitcoin as “electronic money” or “dinero electronico.” Accepting Bitcoin has become the way for store owners and merchants to enter the digital age of payments, instantly creating a tourist destination for many Bitcoin users descending on El Salvador after the law was passed in 2021.
At first success was slow and only one or two shop owners were willing to try it. When they make a Bitcoin sale, they often call Gerardo and ask him to convert the Bitcoin into US dollars. However, many have seen the price of Bitcoin rise significantly in 2023, and are now more inclined to hold on to their Bitcoin. In the end, Gerardo and Evelyn showed them how to use the Blink wallet because it was more user-friendly than Chivo's wallet, and Blink also had a stable feature that allowed the store owner to avoid Bitcoin fluctuations.
Convincing shop owners to accept Bitcoin was only half the equation because they needed customers and no one in Berlin was paying in Bitcoin. The pair began inviting Bitcoin users from El Zonte and San Salvador to Berlin. As these groups of Bitcoin visitors grew in size and frequency, they made sure to organize lunches and dinners at restaurants where Bitcoin was accepted. It didn't take long before other store owners noticed these large groups going to their competitors who accepted Bitcoin.
Gradually, then suddenly…
Once they reached the tipping point of about 50 stores, the need to hire owners completely reversed, Gerardo explained. At that point, store owners started coming up to them and asking how to accept Bitcoin. “People here in Berlin are excited about Bitcoin,” he added. Recently, Gerardo and Evelyn opened a small office in Berlin where they teach people about Bitcoin for free and teach locals who want to learn English for a modest fee.
There is no doubt that the success and hype generated by El Zonte played an important role in adoption, but there are now more than 100 stores and merchants accepting Bitcoin in Berlin which Gerardo estimates represents about a quarter of the stores and businesses in the city.
It is not without irony that I suggested to Gerardo during the interview that Berlin is “the fastest growing Bitcoin community in El Salvador.” He seemed reticent to make that claim, but those are the facts. He explained that there is still a lot to be done in educating local residents and building a circular economy. I was surprised to learn that they had a 15-page strategic plan to develop their new hometown into a world-class tourism destination that they had written. before They started. Their ultimate goal is for the project to be self-sustaining.
They've been so effective in putting Berlin on the map that if you're a Bitcoiner who lands in San Salvador, you have to make a decision: “Do I head south 30 minutes to El Zonte or do I head east 2 hours?” To Berlin?” Do I want the beach [El Zonte] Or mountains [Berlin]?
In either case, there will be many merchants and shop owners in both who will gladly accept your Bitcoin. Meanwhile, tourism continues to grow in El Salvador and circular economies are emerging in unexpected places.
This is a guest post byMark Maria and Perrin Sutton Cleaver. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
