Introduction to the El Zonte Bitcoin Banknote ATM Project
An innovative pilot project in El Zonte, El Salvador is set to transform the way residents interact with cryptocurrency through the world’s inaugural physical bitcoin banknote ATM network. Scheduled to commence at 00:01 local time on January 1, 2026, this initial phase will involve the distribution of 500 exclusive “El Zonte Founding Edition” banknotes, each valued in satoshis. This groundbreaking initiative, announced on November 6, 2025, by the Satnotes El Zonte Experiment, aims to make digital currency more accessible and user-friendly for the local community.
Features of the Banknotes and ATMs
The unique banknotes will be fully backed on a one-to-one basis with bitcoin and secured using a combination of advanced technologies, including dynamic 209-byte QR codes, UV strips, and Schnorr signatures. Unlike traditional financial systems, users will have the ability to engage with these ATMs without any need for seed phrases, mobile devices, or transaction fees, thereby streamlining the process of obtaining smaller denominations ranging from 200 to 20,000 satoshis.
Operational Details and Compliance
At the heart of this initiative is a locally developed smart ATM located at the Bitcoin Beach headquarters, which will facilitate easy deposits and withdrawals without requiring identity verification, adhering to local compliance regulations. The project is fully aligned with El Salvador’s Bitcoin Law and is being financed through a live Geyser fundraiser set to conclude on November 30, 2025. Additionally, there is an ongoing competition for Salvadoran entrepreneurs to participate in the ATM franchise, with submissions due by November 15, 2025.
Community Involvement and Transparency
John Kosanke, one of the project’s key members, emphasized his vision for Satnotes as a pioneering step in the evolution of currency.
The initial batch of banknotes will prominently feature the names of various backers, showcasing four major contributors on the front of each note. Open-source designs and codes related to the project will be available on GitHub, ensuring transparency and community involvement, while franchise rights and ATM availability will remain exclusive to local applicants, following the nation’s legal frameworks.
