Building a Bitcoin Circular Economy in Jericoacoara
I’m deeply inspired by the progress of @BitcoinEkasi, the momentum of the #spedn movement across Africa, and the compelling journey of @orphansofuganda. These initiatives prove that Bitcoin can serve as a true medium of exchange in people’s daily lives. Naturally, I hope to see the same happen in other parts of the world, especially here in Brazil. But the reality on the ground is quite different. Here, we are still just 1% of 1%.
Thanks to the pioneering vision of @BitcoinBeach, a small experiment in El Zonte became the spark for a global grassroots movement. Today, Bitcoin is being used in hundreds of communities around the world. It is a clear reminder that local action, when guided by purpose, can inspire change far beyond its borders.
Inspired by that same spirit, I launched the Praia Bitcoin Jericoacoara experiment in 2021. Since then, we have maintained self-hosted infrastructure using tools like @mynodebtc, @BtcPayServer, and @lnbits. We collect Bitcoin donations and channel them into meaningful, real-world impact. This includes face-to-face education, Lightning Network infrastructure, and merchant onboarding. At our peak, we had around 60 local businesses accepting Bitcoin. Personally, I onboarded over a thousand individuals to @bluewalletio, more than 200 to @blinkbtc and at least 100 to @usebipa.
To engage the community, we created initiatives such as the Fruits for Sats program, local server maintenance, digital lab repairs, and sponsorship of cultural events. These actions gradually changed how Bitcoin was perceived. People started to see it not as speculation, but as community infrastructure and a tool for inclusion.
As the project evolved, we began building additional tools to ensure long-term sustainability. We developed the @bitcoinize machine, promoted adoption of the @bolt_card standard, and supported other local initiatives through the @BitcoinConfed network. Our goal was always to build something bigger than ourselves. We envisioned Praia Bitcoin as a reference model, potentially becoming a Bitcoin Community Bank or at least a reliable local Bitcoin service provider.
But the road has not been easy.
We are located in the Northeast of Brazil, one of the regions with the lowest levels of social and financial development. Financial education is scarce, and many local workers remain locked into a fiat-centered mindset. Although Jericoacoara is marketed as a tourist paradise, it faces deep structural contradictions and hidden inequalities. (BBC article https://bbc.com/portuguese/articles/cgmwpmg4ydeo).
Unlike El Salvador or much of Africa, Brazil has PIX, a government-backed, instant, and free payment system that functions similarly to Lightning. For most people here, it works well enough. Bitcoin adoption in this context is rarely based on necessity. It usually follows long conversations rooted in ideology, curiosity, marketing appeal, or sometimes even financial speculation.
Despite this, I have not been alone in this journey. From the beginning, I’ve had the support of our co-founder Eric Linhares, who has worked quietly but consistently behind the scenes. Together, we have built infrastructure, strengthened our community ties, and laid the groundwork for a project that could grow into something permanent and officially recognized.
We applied to register Praia Bitcoin as a Bitcoin Community Bank, a locally rooted service hub for financial inclusion through open-source tools and noncustodial Bitcoin infrastructure.
Unfortunately, our efforts were rejected.
Just one week after a visit from @HRF to our 2024 Bitcoin conference, the Brazilian government denied our application. The reasons cited in their response (attached) are, in our view, fragile and based on a misunderstanding of Bitcoin’s role in local development.
- "Absence of specific regulation"
“The lack of consolidated regulation in Brazil for digital assets compromises the legal security of the project.”
Comment: This claim is incorrect. Brazil passed Law No. 14.478 in December 2022, which legally defines virtual assets and sets the framework for regulating service providers. The law is active and assigns oversight to the Central Bank for payment use cases. While complementary regulations are still in development, the existence of the law itself already provides a legal foundation. Our project does not operate in a legal vacuum.
- "Compliance risks due to decentralization"
“The decentralized and anonymous structure of Bitcoin presents significant challenges to compliance with anti-money laundering legislation.”
Comment: Bitcoin is not anonymous. It is pseudonymous and transparent by design, with all transactions recorded on a public ledger. Numerous compliance tools exist to monitor Bitcoin transactions, and many regulated institutions around the world already use them successfully. Blanket statements like this ignore global best practices and available solutions.
- "Volatility of Bitcoin"
“The high volatility of digital assets poses a direct risk to the local economy.”
Comment: This misunderstands how Bitcoin is used in our context. We use Bitcoin as a payment network, not an investment product. With tools like the Lightning Network, payments are nearly instant and shielded from price swings. Volatility is not a barrier to daily use when the value is immediately transacted or converted.
- "Incompatibility with solidarity economy"
“The proposed model does not align with the principles of self-sustainability and community development outlined in the State Policy for the Promotion of the Solidarity Economy.”
Comment: Our initiative is a living example of solidarity economy. It is built by and for the local community, with grassroots education, public service maintenance, repair of digital labs, and merchant support. We promote financial inclusion and sovereignty without profit-driven intermediaries. Suggesting that this is incompatible with solidarity is a misreading of both our mission and the policy.
- "Technical complexity may exclude the population"
“The complexity of Bitcoin would hinder financial inclusion and limit local access.”
Comment: This assumption is outdated and paternalistic. Over the last two years, we have onboarded more than a thousand people to Bitcoin wallets and trained over 60 merchants and individuals on how to use Lightning. Our approach is face-to-face, educational, and designed for accessibility. Complexity has not been a barrier when real guidance and tools are provided.
Final Verdict from the Government:
“For the reasons above, the project is incompatible with the current legal framework and the principles of the solidarity economy applicable to the region.”
Comment: Rather than adapting policies to support local innovation, this response attempts to fit a transformative solution into outdated categories. It fails to recognize the real-world results we’ve already achieved and ignores the progress Brazil has made in regulating digital assets. Our work reflects a commitment to community development, education, and responsible adoption of new technologies.
Despite the denial, we remain committed to our mission in Jericoacoara and continue to collaborate with circular economies and Bitcoin communities around the world.
After a year, our questions about the reasons for the rejection remain unanswered. We still believe that transparency and open dialogue are essential to building public trust and institutional legitimacy.
Our vision has always been bigger than permissions or approvals. It is rooted in action, persistence, and real-world impact.
On September 6th and 7th, 2025, we will proudly celebrate our fourth anniversary. We invite everyone — educators, developers, entrepreneurs, volunteers, and curious minds — to join us in Jericoacoara.
Come see what we’ve built, hear our story, meet our community, and take part in the ongoing experiment that is Praia Bitcoin.
Let this anniversary be not only a celebration, but a moment of connection, learning, and inspiration for all who believe in the power of local action to shape a global movement.
Fernando Motolese
Praia Bitcoin Brazil
