So every user could pick their own deterministic symmetric key to encrypt messages while broadcasting the key locally and collecting other keys, too. When messages are received with other known keys, these keys can also be used for own messages, so maybe a location will end up using just one key, making it easier for people living at the far extreme of the locality to be able to read all messages.

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With the above, local chats would be encrypted but sometimes we want proof of locality for local plain text reports - reports/live footage/fotos/... known to have emerged from a specific location. Crypto can certainly help there, too. So some key hashes could be published for a geohash ahead of time but only the group members know the keys - again, only transmitted via local radio. Now, reports signed with those keys would have a high assurance of emerging from that location but other group members would have to check on those and confirm/deny having seen them on local radio.