Exploring Bitcoin’s Potential in Cape Verde: A New Economic Horizon

Cape Verde: An Island Nation with Unique Economic Challenges

The Republic of Cabo Verde, also known as Cape Verde, sits gracefully in the central Atlantic Ocean. This stunning archipelago of ten main islands and several smaller islets is strategically positioned about 570 kilometers west of Senegal. But beneath its tropical charm lies a complex economic landscape that has caught the eye of global reporter Joe Hall.

Remittances: The Lifeblood of Cape Verdean Economy

Strikingly, more Cape Verdeans reside outside their beautiful islands than within them! This phenomenon stems from the nation’s limited landmass, making overseas employment and remittances vital for economic survival. For many islanders, especially in the bustling tourist hotspot of Sal, family members abroad send money home, which often forms the backbone of daily life.

The Currency Conundrum

Tourism fuels the economy, leading to a bizarre situation where Sal operates with three currencies: the local Escudo, the U.S. dollar, and the Euro. In a twist of fate, tourists can also pay in British pounds! However, this multi-currency system creates confusion. Hall hilariously refers to it as receiving ‘confused change’—a delightful mix of euros and escudos at checkout.

The Heavy Toll of Transaction Fees

The struggle gets even harder when you consider the transaction fees imposed by payment giants like Mastercard and Visa, sometimes soaring above 4%. Merchants, in turn, merrily pass these costs on to customers. Add to this the high fees from remittance services like Western Union and MoneyGram, which can charge up to 15% for sending money internationally, and it’s clear that the Cape Verdean economy is taking a hit.

Access to Banking: An Uphill Battle

Banking access is as tricky as a tightrope act. With high ATM fees and stringent operating hours—Cape Verdean banks call it a day at 5 PM—the financial struggles compound. If you thought finding cash was hard, wait until a bank holiday, when ATMs might as well be decorated with ‘out of service’ signs.

Inflation and Financial Inclusion: A Tough Climate

To top it off, inflation rates in Cape Verde are higher than those bustling around the eurozone, despite the escudo being pegged to the euro. This economic environment can make saving, spending, and sending money feel like a boisterous game of dodgeball, with Cape Verdeans effectively dodging financial stability.

Bitcoin: The Ray of Hope?

Amidst this chaos, Hall met with Renato Evarchi, a trailblazer among local business owners who have taken the plunge into Bitcoin acceptance. With enthusiasm, Evarchi shared how Cape Verdeans are starting to embrace Bitcoin as a borderless, decentralized currency that could open new doors for their economy.

Could Bitcoin serve as the antidote to the economic constraints facing this island nation? Only time will tell, but as Hall suggests, adapting to this new financial technology might just be the voyage Cape Verde needs to set sail on!