Report on the Development of a Bitcoin-Based Circular Economy and its Alignment with Sustainable Development Goals

1.0 Introduction: The Praia Bitcoin Jericoacoara Initiative

A field initiative, Praia Bitcoin Jericoacoara, was established in a Brazilian fishing village to create a Bitcoin circular economy. This project represents a practical experiment in leveraging decentralized financial technology to advance several United Nations Sustainable Development Goals (SDGs). The initiative focused on grassroots education and infrastructure deployment without venture capital investment. Over four years, the project successfully integrated local families, merchants, and vendors into the Bitcoin ecosystem, focusing on self-custody and the Lightning Network. This effort serves as a living case study on how digital currencies can support community-led development, directly contributing to:

• SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities) by providing access to a global financial system and promoting financial sovereignty for a marginalized community.
• SDG 8 (Decent Work and Economic Growth) by fostering a local circular economy where value is created and exchanged within the community.
• SDG 9 (Industry, Innovation, and Infrastructure) by building resilient, open-source financial infrastructure, including nodes and point-of-sale tools.
• SDG 11 (Sustainable Cities and Communities) by strengthening local economic resilience and community cohesion through shared financial tools.

2.0 Strategic Analysis from Field Operations

In August 2025, four strategic documents were published to distill the learnings from the project. These documents address the practical, ideological, diplomatic, and technical dimensions of Bitcoin adoption, consistently evaluating its role in sustainable development.

1. A Field Report on the Bitcoin Community Bank: This report detailed the effort to establish a formal Community Bitcoin Bank to institutionalize the project’s success. The initiative aimed to create a recognized entity that could further advance SDG 8 and SDG 11. However, the request was denied by local authorities, highlighting a critical challenge related to SDG 16 (Peace, Justice, and Strong Institutions), where regulatory frameworks have not yet adapted to decentralized technologies. Despite this setback, the project continues to operate, demonstrating community resilience.
2. A Critique of Ideological Rigidity: This analysis examined how internal ideological debates, such as “Bitcoin maximalism,” can impact broader adoption. It argues that for Bitcoin to effectively contribute to SDG 17 (Partnerships for the Goals), a more inclusive and educational posture is required. Engaging with the wider digital asset ecosystem and educating regulators are key to scaling financial inclusion tools and avoiding insularity that could hinder progress.
3. A Diplomatic Proposal to the Kingdom of Bhutan: An open letter was addressed to Bhutan’s prime minister, proposing the adoption of the satoshi as a national unit of account. This proposal was framed as a pathway for nations to pursue alternative development models aligned with local values, independent of traditional financial institutions. This aligns with SDG 17 by exploring innovative sovereign partnerships and supports SDG 8 by envisioning economic models that prioritize well-being (akin to Bhutan’s Gross National Happiness index) over conventional growth metrics.
4. A Public Appeal for Bitcoin’s Core Functionality: This technical appeal argued for maintaining Bitcoin as a peer-to-peer cash system. By preventing the network from becoming a generic data host, its primary function as an accessible and efficient monetary tool is preserved. This focus is critical for ensuring Bitcoin remains a viable infrastructure (SDG 9) for providing financial services to the unbanked and underbanked, thereby directly supporting SDG 10.

3.0 Framework of Bitcoin Adoption Archetypes and SDG Implications

Analysis of the broader Bitcoin ecosystem reveals four distinct archetypes, each with different priorities and potential impacts on sustainable development.

3.1 The Four Archetypes

1. Bitcoin Database (Coordination Builders)

   • Core Belief: Bitcoin is a neutral public record for coordinating people and software; money is just one application.
   • Priorities: Time-stamping, public records, new media, and social protocols.
   • SDG Implications: High potential for innovation (SDG 9) by attracting new builders and use cases. However, this approach risks diverting focus and network resources away from the core monetary function that underpins financial inclusion goals (SDG 1, SDG 10).

2. Bitcoin Central (Market Pragmatists)

   • Core Belief: Bitcoin is an asset whose price and liquidity drive adoption and security.
   • Priorities: ETFs, institutional investment, compliant on-ramps, and deep market liquidity.
   • SDG Implications: Can significantly advance SDG 8 by attracting capital to fund development, security, and education. The primary risk is the potential for centralization and reliance on custodial services, which could undermine the goal of reducing inequalities (SDG 10) by concentrating control.

3. Bitcoin Conservatives (Monetary Purists)

   • Core Belief: Bitcoin is sound money; protecting its core principles of scarcity, neutrality, and self-custody is paramount.
   • Priorities: Base layer stability, running full nodes, and education on monetary principles.
   • SDG Implications: Strongly aligned with promoting financial sovereignty and resilience (SDG 1, SDG 10). However, a rigid focus on on-chain transactions and skepticism towards layer-2 solutions may slow widespread adoption and limit contributions to daily economic activity (SDG 8).

4. Bitcoin Minimalists (Digital Gold and Digital Cash)

   • Core Belief: Bitcoin should serve as both a savings technology (digital gold) and a medium of exchange (digital cash).
   • Priorities: On-chain settlement for savings, combined with non-custodial second-layer solutions like Lightning or ecash for daily payments.
   • SDG Implications: This balanced approach directly supports the creation of sustainable circular economies (SDG 11). It enables individuals to protect their savings (SDG 1) while participating in local commerce (SDG 8), all while maintaining financial self-sovereignty (SDG 10).

4.0 Conclusion and Recommendations

The work at Praia Bitcoin Jericoacoara demonstrates that Bitcoin can be a powerful tool for achieving the Sustainable Development Goals when implemented with a focus on community needs, education, and self-sovereignty. The most effective path forward is a principled and practical one that aligns with the “Bitcoin Minimalist” archetype.

To maximize Bitcoin’s positive impact on global development, the following standards are recommended:

• Prioritize technologies and practices that increase self-custody, empowering individuals and communities.
• Focus on making payments reliable and accessible without reliance on custodial intermediaries.
• Support market liquidity that directly funds network security and grassroots educational initiatives.
• Respect the technical limits of the base layer to ensure its long-term viability as a global, neutral, and decentralized monetary system.

By adhering to these principles, the various approaches within the ecosystem can complement one another, ensuring that Bitcoin’s benefits are broadly shared and contribute meaningfully to a more equitable and sustainable global economy.

Sustainable Development Goals (SDGs) Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty
   • The article discusses the creation of a “Bitcoin circular economy” and “social programs paid in sats” in a fishing village in Brazil. These initiatives are aimed at providing financial tools and support to the local community, which can contribute to poverty alleviation by offering alternative economic pathways and financial inclusion.
2. SDG 8: Decent Work and Economic Growth
   • The project focuses on fostering local economic activity by onboarding “shopkeepers and street vendors” and enabling them to participate in a new digital economy. The attempt to establish a “Community Bitcoin Bank” is a direct effort to create financial infrastructure that supports local entrepreneurship and sustainable economic growth.
3. SDG 9: Industry, Innovation, and Infrastructure
   • The initiative is described as a “radical experiment in financial sovereignty built with open source tools.” It involves building new digital financial infrastructure, such as installing “nodes,” “reliable Lightning routes and point‑of‑sale tools.” This represents an effort to foster innovation and develop resilient, modern infrastructure at the community level.
4. SDG 10: Reduced Inequalities
   • By focusing on “inclusion” and providing financial education and tools to “families, shopkeepers and street vendors” in a specific community, the project aims to reduce financial inequalities. It provides access to a global financial system for individuals who might be underserved by traditional banking, empowering them economically.
5. SDG 16: Peace, Justice and Strong Institutions
   • The article details the effort to gain “institutional recognition as a Community Bitcoin Bank” and the subsequent rejection by local authorities. This highlights the interaction between new, decentralized systems and existing legal and political institutions. The project’s goal is to create a transparent, community-based financial institution, which aligns with the development of accountable institutions.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 1 (No Poverty):
   • Target 1.4: Ensure that all men and women, particularly the poor and vulnerable, have equal rights to economic resources and access to new technology and financial services. The project directly addresses this by providing the community with access to Bitcoin, a new financial technology, through education and infrastructure.
2. Under SDG 8 (Decent Work and Economic Growth):
   • Target 8.3: Promote development-oriented policies that support entrepreneurship and the growth of micro- and small-sized enterprises through access to financial services. The project supports local “shopkeepers and street vendors” by providing them with point-of-sale tools and access to the Bitcoin network.
   • Target 8.10: Strengthen the capacity of domestic financial institutions to encourage and expand access to banking and financial services for all. The attempt to create the “Community Bitcoin Bank” is a direct initiative to build a new type of domestic financial institution aimed at expanding financial access.
3. Under SDG 9 (Industry, Innovation, and Infrastructure):
   • Target 9.1: Develop quality, reliable, and resilient infrastructure to support economic development and human well-being. The installation of “servers,” “nodes,” and “reliable Lightning routes” constitutes the development of a new form of digital financial infrastructure for the community.
4. Under SDG 10 (Reduced Inequalities):
   • Target 10.2: Empower and promote the social and economic inclusion of all. The project’s foundation in “education, inclusion and local infrastructure” and its work with diverse community members like “families, shopkeepers and street vendors” directly aims to foster economic inclusion.
5. Under SDG 16 (Peace, Justice and Strong Institutions):
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The effort to establish a “Community Bitcoin Bank” based on a transparent, open-source protocol is an attempt to create a new, more transparent financial institution, though the article notes the challenge of gaining recognition from existing state institutions.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 1 & 10 (Poverty & Inequality):
   • Number of community members onboarded: The article explicitly mentions that they “onboarded families, shopkeepers and street vendors.” Tracking this number would measure the reach of financial inclusion.
   • Number of educational sessions conducted: The text states they “taught self‑custody in small groups,” indicating that the quantity and quality of financial education are measurable outcomes.
   • Number of social programs implemented: The article refers to having “ran social programs paid in sats,” which can be quantified to measure direct community support.
2. For SDG 8 & 9 (Economic Growth & Infrastructure):
   • Number of merchants accepting Bitcoin: The project involved onboarding “merchants and neighbors” and installing “point‑of‑sale tools,” making merchant adoption a key progress indicator.
   • Amount of infrastructure deployed: The article mentions the installation of “servers” and “reliable Lightning routes.” The number and reliability of these infrastructure components can be measured.
   • Establishment of financial institutions: The attempt to register the “Community Bitcoin Bank” serves as an indicator. While it was rejected, the process and outcome measure the progress and obstacles in creating new institutions.
3. For SDG 16 (Strong Institutions):
   • Institutional Recognition: The primary indicator mentioned is the success or failure in getting the “Community Bitcoin Bank” officially registered by “local authorities.” The rejection mentioned in the article is a data point indicating a lack of progress in this specific area.

4. Table of SDGs, Targets, and Indicators

Source: bitcoinmagazine.com