Editor's note: we previously wrote that Witsand had "rebranded" as "Bitcoin Witsand". We inadvertantly caused some confusion among residents, who believed their town was going to be renamed.

After an email from local ratepayers association chair Eldry Hill, we have edited the article to avoid the confusion this figure of speech has caused, and clarifying some confusion on our part. As Hill notes in her email:

"Witsand is not rebranding. We have rich history that we are very proud of.

Bitcoin Witsand is an education and awareness initiative operating from within Witsand; trying to get ordinary South Africans to ask questions like ‘What is Money’ and ‘What makes Bitcoin different from Crypto’. "

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Witsand, a south coast town with a population of around 450 to 500, has seen remarkable Bitcoin uptake, with about 70 people using it regularly and 15 businesses accepting it as of January 2024.

This adds to a growing trend in other areas, as over 70 places in Plettenberg Bay now accept bitcoin, and many others in Stellenbosch, where a number of new startups have cropped up, including the Bitcoin Lightning protocol payment system MoneyBadger.

Bitcoin is used more per person in Witsand than almost anywhere else in the world. It’s a place where people can pay for nearly everything with Bitcoin—food, vacation rentals, gym visits, gas, mini-golf, and water sports. Most folks in this tiny town save their money in Bitcoin, and even the waiters and hotel staff get paid and split tips using a fast Bitcoin payment system called the Lightning Network.

Almost every business accepts Bitcoin, from the gym to the corner shops to a rum distillery. The distillery owner was slow to warm up to Bitcoin but now loves it and might even make Bitcoin-themed rum. He mentions “the halving,” which is when Bitcoin’s mining reward gets cut in half every four years to keep it rare—there’ll never be more than 21 million Bitcoins.

The town’s Bitcoin boom started with a few passionate people who got others on board. Key figures like Edwin Jones, a software engineer, and Ellie, chair of the Witsand Ratepayers Association, have played pivotal roles. Ellie’s businesses, Ellie’s on Main and Nella se Winkel, were among the first to accept Bitcoin, with Ellie’s on Main being noted as the initial adopter.

The public education strategy included handing out vouchers for Bitcoin-accepting shops and hosting community events, which helped create a positive connotation with Bitcoin.

Locals say Bitcoin helps them save money and compete globally, since the South African rand keeps losing value. While educating customers was an initial hurdle, it has proved a success.

In South Africa, a growing trend of Bitcoin adoption is evident through community-driven initiatives like Bitcoin Witsand, Bitcoin Karoo, and Bitcoin Plett, primarily concentrated in the Western Cape. These projects aim to create circular economies where residents use Bitcoin for daily transactions, bypassing traditional banking systems. This movement reflects broader African cryptocurrency trends, driven by financial inclusion and economic instability, with South Africa ranking high in adoption per Chainalysis reports.

But this is part of a broader trend - the Western Cape leads the country in Bitcoin adoption, especially in retail. A whole cluster of local organisations have sprung up, like Bitcoin For Fairness, Bitcoin Plett, Bitcoin Karoo, Bitcoin Ekasi in Mosselbaai and Bitcoin Ubuntu in Swellendam. The Western Cape’s dominance is clear, with fewer similar initiatives in provinces like Gauteng or KwaZulu-Natal, where Bitcoin events or scams overshadow community projects.

These efforts are attempting to position the South Cape as a decentralized finance hub, leveraging Bitcoin’s accessibility—needing only a smartphone and internet—to address limited banking access in rural areas.

The Western Cape’s focus may be bolstered by figures like Riccardo Spagni, a cryptocurrency developer in Plettenberg Bay, enhancing local enthusiasm. Community leaders drive education, with practical uses like petrol purchases in Witsand showcasing Bitcoin’s utility. Adoption rates suggest scalability, though challenges like education and trust persist.

South Africa’s permissive regulatory stance, with restrictions rather than bans per the IMF, supports these initiatives, unlike stricter African counterparts. As major chains like Pick n Pay adopt Bitcoin, and events like Adopting Bitcoin Cape Town 2025 loom, the Western Cape leads a potentially seizmic financial shift.

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