• Deputy prime minister Olavo Correia stated that Cape Verde wants to achieve 60% of digital public services by 2026.
• Cape Verde’s Central Bank (BCV) has expressed interest in expanding the country’s innovation and digital transformation.
• George Ayinde has established WeMove Defi, a suite of Web3 companies that provide advice for real-world blockchain solutions.

In Africa, crypto adoption is a hot topic regarding its digital transformation. We at Web3Africa have highlighted several countries and their stance on digital currency adoption. In most cases, four significant countries always steal the limelight; Nigeria, which stands at the top of West Africa’s crypto Industry; South Africa and its high adoption rate of blockchain; Kenya representing the nation in Web3 and Egypt, dominating the franchise in the North. However, despite their small size, some countries have shed a glimmer of hope to war the continents’ blockchain adoption rate. Seychelles and Mauritius are well known in this category but what of Cape Verde?

Many forget this West African Island due to its small size and minor contribution to Africa’s GDP. However, it is among the few African countries to attain political and economic activity. This achievement sheds various questions, but we will highlight their stance in Africa’s web3 community more.

A glimmer of hope for Africa’s crypto adoption rate.

As the beginning of Q2 2023 draws to a close, it is evident that Africa’s crypto adoption rate is receiving heavy backlash. Since the crash, numerous African crypto exchanges had to close their doors. Companies such as Lazerpay, Paxful, and Nestcoinamong others, have closed their doors due to their inability to cope with the crypto winter.

The push for more African CBDCs has abruptly stopped after the crypto crash forcing several countries t reconsider the concept of digital currency in their economy. Existing CBDCs, such as E-Naira and the digital currency Sango coin, are failing their governments.

Also, Read Where to find Bitcoin ATMs in South Africa.

In Nigeria, crypto traders are steadily regaining momentum, but its eNaira is effectively failing. Many have speculated that to counter its impending doom, the government issues a new design for their currency but somehow limits its supply despite having existing ratings on its predecessor’s supply.

As a result, the government is indirectly forcing its citizens to turn to its CBDC. The developers behind the Sango Coin have postponed its listing despite claiming they would accomplish this feat at the beginning of Q1 2023. The Central African Republic has delayed other plans due to this, but they continue to rely on Bitcoin as a legal tender.

Recovering Africa’s web3 community

Fortunately, not all hope is lost. Despite the crypto winter’s grip, It has yet to affect other web3 elements. Blockchain startups are currently thriving within the ecosystem. Granted, the existing blockchain-based fintech companies might expect a slow run, but its incline trajectory is rather promising.

Egypt recently announced its support of blockchain developers within the country; its government have stated that the digital transformation of Africa is inevitable, and to survive, each African country has to embrace it. Flutterwave recently announced that Kenya had attained the East African hub title due to its innovation in Web3 and tech.

Other upcoming countries such as Tanzania, Uganda, and Zanzibar are each embracing blockchain adoption, which, in turn, boosts the digital transformation of Africa. Fortunately, Cape Verde, another small and upcoming country, has expressed interest in digital currency.

Cape Verde stands with crypto.

Cape Verde, more commonly known as Cabo Verde, is a country comprising a group of Islands similar to Seychelles. It is considered part of West Africa despite being 620 km from the west coast of Africa. Despite its small size, this is one of the few countries in Africa that has sustained and maintained political and economic stability.

Its tiny size houses house 587,925 citizens as of 2021. Its manageable size in land and citizens means that such a country has few natural resources. Despite this, its economy has stationed a stable nature since its founding.

Cape Verde’s Central Bank (BCV) has expressed interest in expanding the country’s innovation and digital transformation for some time now. Initially, when the concept of digital currency was first landed on West African Island, the BCV never gave a direct answer to it. This led to the steady growth of interest within its government and people. 

The stance of Cape Verde’s Central Bank

Despite its crypto adoption rate needing to be known, the government had expressed interest in developing the country’s CBDC. According to an announcement, deputy prime minister Olavo Correia stated that Cape Verde wants to achieve 60% of digital public services by 2026. He further claimed that this figure would reach 80% by 2030. During another interview, Edna Oliviera, minister of state modernization and public administration, reaffirms the country’s desire for digital transformations. 

Also, Read What is Web3 and Why is it Important for Africa?

This would mean effectively modernizing every aspect of its system, including its financial system. Its crypto adoption may not be as clear, but the government is willing to support digital currency to propel blockchain adoption in its ecosystem further.

According to reports improving digital currency adoption is part of the BCV strategic plan for 2021/24. Currently, the governments of Cape Verde have deployed several research and analysis teams. Their main aim is to analyze monetary policy’s impacts and the advantages and risks to its financial sector. In addition, the BCV has also stated that before implementing any digital currency, it must consider how it will affect its final stability.

Antonia Lopes stated that digital currency adoption for Cape Verde is necessary to speak innovation within the country. A stable blockchain adoption rate will benefit other sectors besides a blockchain payment system. He further claimed that controlling the country’s crypto adoption would require accurate regulations to protect individuals against fraudulent activities.

Interest in Cape Verde sparks other flames.

The West African Island announcing its interest in the continent’s crypto adoption rate has caused a ripple effect on its citizens. George Ayinde has established WeMove Defi, a suite of Web3 companies that provide advice for real-world blockchain solutions.

He claimed that the WMV token underpins the governance and commercial structure of WeMove and functions as a payment token in its ecosystem. In response to the BCV announcement, THe WeMove ecosystem launched the 1Tribe Raio station. The digital radio station will spread awareness of digital currency adoption nationwide. The organization has partnered with other web3 companies, such as Moonbeans, an NFT marketplace. This leads to a fully functioning Web3 ecosystem within Cape Verde.

Also, Read The Federal Reserve Bitcoin report and what it means for the African crypto market.

Conclusion

Despite its minor footprint in West Africa’s crypto Industry, Cape Verde might showcase how implementing CBDCs is done. With its government backing its adoption, the digital currency might fully integrate with other financial systems.