Cointelegraph recently traveled to Cape Verde, West Africa, to explore whether Bitcoin (BTC) can be a tool for progress.
In Cointelegraph’s latest on-the-ground documentary, global journalist Joe Hall investigates the remittance market, the cash economy, and the challenges and opportunities facing small island nations around the world.
Cape Verde, officially the Republic of Cape Verde, is an island nation in the mid-Atlantic. Cape Verde consists of 10 main islands and several smaller islets, located 570 kilometers (350 miles) west of Senegal in West Africa.
Hall found that there were more Cape Verdeans living abroad than on the country’s islands. Due to its small land area, it is difficult to grow and export goods abroad. Cape Verdean islanders, especially Sal, rely on tourism to stimulate the economy, with relatives living abroad sending money home.
The combination of tourism and remittance economies creates a variety of problems. Since there are tourists year-round, Sal uses three currencies: the local escudo, dollars and euros, although Hall found it was also possible to pay in pounds. Mastercard and Visa charge transaction fees of up to 4% in stores, and merchants often pass this fee on to customers.
Western Union and MoneyGram charge customers up to 15% for cross-border money transfers. High remittance fees are like a tax on the high incomes of Cape Verdean workers living abroad.
Cape Verde’s cash economy is also constrained by high ATM and bank usage fees and strict opening and closing hours. Banks on the Cape Verde island close at 5pm local time and cash at ATMs often cannot be withdrawn during bank holidays, creating further financial obstacles for full-time workers.
Finally, despite the Escudo being “pegged” to the euro, Cape Verde’s inflation rate is still higher than that of the Eurozone as a whole. Compared to Western economies, the Cape Verde Islands’ existing financial system prevents Cape Verdeans from simply spending, saving and sending money in ways that many Westerners take for granted.
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While investigating these economic issues, Hall met with Renato Evarchi, one of the first business owners in Cape Verde to accept Bitcoin. He elaborated on the economic situation and explained how more and more Cape Verdeans are enthusiastic about borderless, immutable and decentralized online currencies.
To learn more about Hall’s trip to Cape Verde, watch the full documentary above and subscribe to Cointelegraph YouTube channel.
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