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I am with the Adelante Foundation. We are a microfinance institution serving the poorest of the poor women in Honduras. We are currently toying with the idea of transitioning into a cashless model using the Bitcoin and I had a few questions I was hoping you could help me out with.

I understand the benefits of going cashless and using the Bitcoin. I also understand the efficiency of approving loans and transferring money to clients. What I do not understand is how the clients use that money to pay for things. Since Adelante works in very rural areas, it's very possible they will need cash to make transactions, so how do they do that? Would all the vendors need to have some sort of software that supports Bitcoin?

Any light you could shed on this subject would be very appreciated! Thank you so much!

Best, Tim

Tim
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Yes, if you're transacting with bitcoin, you will need vendors that accept bitcoin instead of cash. Furthermore, the clients and vendors will most likely need internet access in order to send bitcoins from one person to another.

It would probably help to know a little bit about how bitcoin works and how it's a global ledger system based on the blockchain. This answer should enlighten you a bit about the requirements.

Community
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Jimmy Song
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If you use bitcoin, both sides of the transaction will need to use bitcoin. Bitcoin also needs internet access or mobile 3G or similar. In a rural area this may be hard to come by.

MagikCow
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