Remote Tuvalu celebrates opening of first ATM

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Pacific microstate Tuvalu on Wednesday unveiled its first ATM, ushering in what officials called a "transformative" era of modern banking in the remote archipelago.

For years, Tuvalu's 12,000 residents have done all their banking in cash, with workers enduring long lines to withdraw their wages from the bank every payday.

Now they will be able to withdraw money at the swipe of a card from Tuvalu's first ATM.

Siose Teo, general manager of the National Bank of Tuvalu, said it was a "great achievement" and "transformative switch" that was many years in the making.

Prime Minister Feleti Teo said it was a "significant milestone" with a "noble objective".

Dignitaries gathered in front of the ATM, on the main island of Funafuti, to mark the occasion with a heaving chocolate cake.

"It will definitely break the barriers and introduce the people to modern and reliable banking services," said Nisar Ali from Pacific Technology Limited, which helped design the machine.

With a landmass of just 26 square kilometres (10 square miles), climate-threatened Tuvalu is one of the smallest and most remote nations on the planet.

An Asian Development Bank briefing from 2019 described its banking sector as "effectively unregulated".

"Key reform priorities are instituting effective banking oversight and expanding access to financial services," it said.