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Bitcoin Banknote-ATM Network Pilot Set to Launch in El Zonte, El Salvador

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The coastal town known as Bitcoin Beach is set to make history once again with the world’s first Bitcoin banknote ATM network pilot, scheduled to debut on January 1, 2026.

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The initiative, known as the Satnotes El Zonte Experiment, aims to merge the tangibility of cash with the technology of Bitcoin, allowing residents and visitors to withdraw physical Bitcoin banknotes directly from a locally built ATM. Each note, called a Satnote, is backed 1:1 by Bitcoin on-chain through the RSK DAO, and secured with a blend of cutting-edge features, including dynamic 209-byte QR codes, color UV strips, and Schnorr signatures.

At precisely 00:01 local time on New Year’s Day, the first 500 “El Zonte Founding Edition” Satnotes—denominated between 200 and 20,000 satoshis—will be dispensed from the Bitcoin Beach HQ ATM. Unlike traditional crypto access points, users will not require seed phrases, mobile phones, or transaction fees to use their notes, making it a more accessible gateway to Bitcoin for locals and tourists alike.

According to project lead John Kosanke, Satnotes represents “the future of money,” bridging the digital and physical worlds in a way that preserves Bitcoin’s core principles of decentralization and open access.

The open-source pilot is fully compliant with El Salvador’s Bitcoin Law and is being funded through a live Geyser fundraiser, which remains open until November 30, 2025. Organizers have also opened a franchise competition for local ATM builders, with bid submissions due by November 15.

Source: create.vista.com

Source: create.vista.com

Each of the 500 inaugural notes will bear the names of backers, with the top four donors featured prominently on the front designs. The system will operate on a no-KYC model for local deposits and withdrawals, reflecting Bitcoin’s privacy ethos while remaining transparent through open-source code and designs hosted on GitHub.

Only Salvadoran applicants will be eligible for the initial franchise rights, which are subject to local regulations. Printer partnerships are currently under final quotation.

The launch of the Satnotes pilot underscores El Zonte’s growing reputation as a global testbed for Bitcoin innovation. From pioneering the first “Bitcoin Beach” economy to introducing a tangible form of decentralized money, El Zonte continues to push the frontier of crypto adoption—one satoshi at a time.

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