With Bitcoin Beach and Bitcoineta Inka, the use of BTC grows in Peru

The adoption of bitcoin (BTC) and other cryptocurrencies is gaining momentum in Peru. In one year, the country has climbed six places in the global digital asset index compiled by blockchain analysis firm Chainalysis.

Walking through the streets of Lima, the Peruvian capital, at first glance you don’t fully notice the leap that the South American country has made in the global report on cryptocurrency adoption. That’s because in its economy, the performance in controlling inflation is remarkable.

Unlike many of its neighbors in Latin America, Peru has maintained its inflation rate in single digits for more than 27 years, which gave it regional leadership in price stability, positioning it as a benchmark in the region.

However, although the country has achieved inflationary stability, Its economic outlook remains complicatedespecially considering that at the same time, it has recorded an increase in monetary poverty rates.

According to the National Institute of Statistics and Informatics (INEI), 29.0% of the Peruvian population is affected by povertywhich represents an increase of 1.5 percentage points compared to the previous year. This alarming increase is attributed to a series of negative shocks that have impacted citizens’ income, including the consequences of social conflicts, climatic phenomena such as El Niño and loss of business confidence.

The most vulnerable sectors, especially fishing and agriculture, were severely affected by the climatic problems that reduced the income of fishermen, farmers and traders during the year. This scenario of economic difficulties has generated an increase in poverty that affects a considerable part of the population.

Poverty, a catalyst for bitcoin adoption

In his global adoption report Chainalysis reveals how countries with the highest poverty rate are adopting Bitcoin more. This is not only because their populations are looking for new investment opportunities, but also as a response to urgent economic needs.

Bitcoin’s ability to offer accessible and efficient financial services in limited contexts strengthens its adoption in these nations, thus promoting greater financial inclusion.

By analyzing the value transacted by individual users on centralized services, the Chainalysis study reveals that countries with high poverty rates show greater activity in smaller-scale cryptocurrency transactions, indicating that People are using bitcoin and other cryptoassets for everyday needs.

This trend is significant as the use of cryptoassets for small transactions allows individuals to access financial services, especially in communities that have been excluded from the traditional financial system.

That is precisely what is happening in Peru, where bitcoin stands out as the bank of remote villages. This is demonstrated by the town of Huayllapata, where an association of Quechua women are talking about bitcoin, learning about Satoshi Nakamoto’s invention and accepting payments in BTC in exchange for their crafts.

Bitcoin Beach and Bitcoineta Inka, a reflection of enthusiasm for BTC

Several towns in Peru demonstrate that bitcoin can be a crucial tool for financial inclusion and also for improving their economic conditions. This is not only because the digital currency is a reserve asset, but also because it allows them to have access to a global financial system and an inclusive asset with which they can move their economies.

It is possible because Bitcoin is reaching many rural and remote areas where there are no physical bank branches or ATMs. Digital currency is also gaining the trust that the banking system lost due to negative experiences in many cases.

«Motiv is promoting education in disadvantaged places. In the community of Banderas in Ancón, Lima, we provide education to children and adolescents through the Motiv After School program, where Bitcoin is our tool to transform futures.»
Team of Motiv Peru.

Additionally, with bitcoin in their hands, Peruvians are receiving the financial education that has always been absent in their communities. This is something that is happening in many remote towns in Peru thanks to the non-governmental organization (NGO) Motiv, whose team has been working to create bitcoin citadels or circular economies.

There, the adoption of bitcoin is unstoppable and is now one of the main attractions of the historic seaside resort town of Huanchaco. A Bitcoin Beach has been developedfollowing in the footsteps of the citadel of El Salvador, where an entire community of surfers inspired the adoption of bitcoin as legal tender in the Central American country.

So, in Peru’s Trujillo province, on Huanchaco Beach, surf instructor Tito Lescano teaches surfing to local children. They are all inspired and enthusiastic about bitcoin, because it is the only currency they use to pay for their activities, thus driving a circular BTC economy.

A similar story is unfolding about 600 kilometers away, specifically on the beach of Máncora in the Piura region, on the northwest coast of the country. On this beach with big waves, another surf school accepts payments in BTC while encouraging the practice of this sport.

And much further away, in the Andes region, now Motiv brings bitcoin education to the most remote villages with the Bitcoineta Inka. It is a vehicle with enough capacity and traction to climb the longest mountain ranges in the world, where the descendants of the Inca civilization live, which developed the largest empire in America, which existed between the 15th and 16th centuries.

In short, the adoption of bitcoin and other cryptocurrencies in Peru is presented as an emblematic phenomenon that reflects both the economic challenges and the innovation opportunities faced by the population.

As the country advances in its global digital asset index, it is becoming clear that the search for effective solutions to combat poverty and promote financial inclusion is driving interest in bitcoin.