Cointelegraph recently embarked on a journey to Cape Verde, a small island nation in West Africa, to explore the potential of Bitcoin (BTC) as a tool for progress. In a gripping on-the-ground video documentary, Cointelegraph’s global reporter Joe Hall delves into the remittances market, cash economies, and the challenges faced by small island nations like Cape Verde.
Cape Verde, officially known as the Republic of Cabo Verde, is situated in the central Atlantic Ocean. With 10 main islands and several smaller islets, it is located about 570 kilometers (350 miles) west of Senegal, West Africa. Interestingly, Hall discovers that the number of Cape Verdeans living abroad exceeds the population residing on the islands. This is primarily due to the country’s small land mass, which hampers its ability to cultivate and export goods. Instead, Cape Verde relies heavily on tourism to stimulate its economy, while its citizens abroad consistently send money back home.
While the combination of a tourism-driven economy and remittances may seem beneficial, it presents several issues. Sal, one of the islands of Cape Verde, encounters a unique challenge as it is frequented by tourists year-round. As a result, Sal utilizes three currencies: the local Escudo, the U.S. dollar, and the Euro. However, Hall discovers that British pounds are also accepted as a form of payment. Merchants in Sal often pass on the high transaction fees imposed by Mastercard and Visa, which can be as high as 4%, to customers.
Furthermore, the remittance market in Cape Verde is burdened by exorbitant charges from companies like Western Union and MoneyGram, which can reach up to 15% for sending money across borders. These high costs act as a significant tax on the incomes of Cape Verdean workers living abroad. Additionally, the cash economy in Cape Verde faces hurdles such as high ATM and bank access fees, as well as strict opening and closing hours. Banks in Cape Verde close at 5:00 pm local time, and during bank holidays, ATMs frequently run out of cash for withdrawal, further impeding economic activities for full-time workers.
Despite the challenges, Hall meets with Renato Evarchi, one of the first business owners in Cape Verde to accept Bitcoin. Evarchi sheds light on the economic situation and explains how more Cape Verdeans are embracing the idea of using a borderless, immutable, and decentralized internet currency like Bitcoin. This could potentially empower individuals and businesses alike by offering a more efficient and cost-effective financial solution.
The documentary serves as a powerful exploration of the economic struggles faced by a small island nation like Cape Verde. It highlights the potential of Bitcoin to alleviate some of these challenges, providing an alternative financial system that bypasses traditional intermediaries and high transaction fees. As the world continues to evolve digitally, it is crucial for nations like Cape Verde to adapt to these transformative technologies in order to achieve progress and financial inclusion.
To gain further insight into Joe Hall’s travels in Cape Verde and to watch the full documentary, viewers are encouraged to visit Cointelegraph’s YouTube channel and subscribe for more engaging content.
Overall, the documentary paints a vivid picture of the economic landscape in Cape Verde and offers hope for a brighter future through the adoption of Bitcoin and other cryptocurrencies. By embracing these financial innovations, small island nations like Cape Verde can leapfrog traditional barriers and unlock new opportunities for growth and development.
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