There is a 'fundamental clash' between bitcoin and institutionalization, says BTC circular economy project founder

Bitcoin is on a "collision course" with the existing system, according to Hermann Vivier of Bitcoin Ekasi.

Speaking with The Block's Gareth Jenkinson at the conference on Thursday, the founder of the South African Bitcoin circular economy project said that full institutionalization would ruin Bitcoin's value proposition.

"There is a fundamental clash between the thing that Satoshi built and released in 2009 and the current system," Vivier said. "Power does not want self-custody, self-sovereignty, and privacy. Power wants control."

"Bitcoin is a revolution of sorts, but it is a quiet revolution where you avoid using violence — You simply remove the power from the people who would otherwise oppress you," Vivier added. "Bitcoin is all of these things because it's not going to be a store of value unless it's also a medium of exchange."

Vivier said the best way to accumulate bitcoin is to mine the cryptocurrency, but the second-best and easier way is to sell one's goods and services for bitcoin instead of fiat, ultimately creating an alternative system where individuals have the power.

"Your store of value goes to shit if it's held in custody and completely institutionalized," the Bitcoin Ekasi founder said. "I think that narrative is very, very important to give a voice to … just to remember that we're not here to get rich, we're here to create a better system. That's what sets Bitcoin apart."

Movement is growing

Bitcoin Ekasi is a grassroots bitcoin circular economy project established in 2021 to empower local South African communities by helping them earn, spend, and save in satoshis. 

The project has grown to give 180 people direct exposure to bitcoin through staff and associated merchants. Counting those with secondary exposure to the project, Bitcoin Ekasi has enabled 500 to 600 people to use bitcoin regularly, Vivier told The Block.

"The idea is to build a little, small economy based around bitcoin to demonstrate that it's possible," Vivier said. "The idea is not to scale it to thousands of people. It's just a proof-of-concept."

Still, Vivier said some of the participants have saved life-changing amounts of money through bitcoin.

The founder also noted that such a bitcoin-based grassroots movement is growing in South Africa, saying that there are around six circular economies on the Garden Route of the country that are organically growing. This is unseen in most other parts of the world, Vivier said, except for El Salvador and Kenya.

"Bitcoin is not the end. Bitcoin is a means to an end, and for me, the end has always been freedom. Freedom is what I want," Vivier said. "There are many ways to get there, and there are tools that you employ to get there. Bitcoin is one of those tools, and I don't think we should ever lose sight of that."