The dollar is a passion of the Argentines, but the Bitcoin slowly also looks for its place as a safeguard currency after the greenback appreciated more than 100% since the April exchange run. And, this year, with the uncertainty that a presidential election usually brings to the market, it is understandable that the number of "crypto ATMs" in the country increases.Bitcoin appears as an escape from local volatility: it is independent of a central authority and promises security and traceability of its transactions. As a counterpart, there are also doubts and concerns, especially among those new to this world of digital currencies.
"How can I use it?" Is one of the most frequently asked questions. Although there are already digital channels that validate payments with these currencies (there are even businesses that accept them), the use of cash does not lose validity.
Therefore, the ATM chain Athena Bitcoin decided to bet on Latin American economies to expand its business.
Today, a year after having landed in Argentina, the company already has nine terminals and plans to add another 150 before the end of the year.
"After an arduous work to overcome the local bureaucracies, we managed to import the machines in September 2018. We installed the first one in Recoleta Urban Mall and we observed a great interest of the public, so we continue installing ATMs to this day," he says. to iProUP, Matías Goldenhörn, Latin America director of Athena Bitcoin.The objective is to close March 2019 with 11 terminals in the Federal Capital and Greater Buenos Aires.
These ATMs became the first of their kind in the country and made it possible for users to buy and sell bitcoins in cash with Argentine pesos. In addition, it is a faster and easier method to make "cash out" of this digital currency.
"Many people thanked us, since they should not have a bank account to use them," adds Goldenhorn.
The concept of these devices is rooted in decentralization, since the main focus of clients is placed on those outside the banking system and, therefore, can not buy or sell bitcoin in traditional exchanges.The company already has nine ATMs installed:
- Recoleta Urban Mall
- Bitcoin Store, in Garden Gallery
- Walmart Supermarkets (in the branches of Av. Constituyentes in Capital, La Plata, Avellaneda, San Fernando and Pilar)
- Chango Más, in Tigre
- Bitcoin Argentina Foundation (Microcentro)
In addition, the firm will install two more machines in Belgrano and Palermo by the end of this month and is preparing to expand its presence in the main markets of the region.
"We are working on completing our first round of investment to continue expanding in Argentina, Colombia, Mexico, Chile and Brazil.Our business plan foresees between 100 and 150 ATMs by the end of the year, according to how the capitalization evolves", says , ambitious, the manager.
For its part, explains that Argentina is the country with the most developed ecosystem in Latin America, a little by the concern of the people and another driven by the economic situation.
"We can see how locally-grown companies continue to grow and how new companies are created year after year, being a country in which citizens do not trust their local currency, due to its high volatility and high inflation, Bitcoin appears as an alternative of great potential investment ", completes.How do ATMs work?
The essence of cryptocurrencies is decentralization and the direct relationship of users with their digital assets. This, however, brings with it the problem of circulation, especially in countries where there is still no organic integration with these currencies. To narrow this gap these ATMs appeared.The units installed in the country are bidirectional, so they allow the purchase and sale of bitcoins with Argentine pesos.
The Latin America director of Athena Bitcoin assures that in the future it will also enable the purchase of other digital currencies, such as Litecoin (LTC), Ethereum (ETH) and Bitcoin Cash (BCH). In addition, it will be possible to exchange them for local currency.
Today, the minimum purchase is 100 pesos. To operate it is necessary to have ID, passport or Mercosur card and a phone that receives SMS to validate the user.An ecosystem that is consolidated
According to estimates by Bitex, an Argentine company that provides financial services on Bitcoin's blockchain to buy this currency and make payments, there are between 200,000 and 300,000 local users that already operate with digital currency.
Today, Buenos Aires ranks as the second market with the highest concentration of this virtual currency worldwide. Thanks to the decentralized and open Bitcoin model, more and more people are turning to it."Everyone can participate in this market," explains Manuel Beaudroit, co-founder and CMO of Bitex, iProUP.
Local companies, attentive to this adoption boom, which was not affected by the swings that crypto firms have suffered throughout 2018, have carried out bets of different caliber related to trade based on digital currencies.
During 2018, the options for using virtual currency did nothing but expand. In October, Garbarino Viajes became the first tourism company to accept bitcoins as a means of payment. It did so through an agreement with Bitex, which offers various linked services.
In the company they made the decision to move forward with the inclusion of digital currency as part of a broader strategy, aimed at incorporating blockchain technology in the transaction process, which stands as the safest alternative for this type of operations.On the other hand, the Argentine users of Ripio, a local firm that provides different services related to bitcoins, can now transfer their money available in Mercado Pago to their digital wallet instantaneously. It is the first alliance of Mercado Libre, the most valuable company in the country, with a digital currency signature.
The initiatives do not end there. The Bitcoins exchange platform, SatoshiTango, presented a service that will allow its users to exchange these assets for cash, using the RapiPago platform.Latin American alternative
Argentina is not the only country that is going through a crisis and that benefits from the installation of these machines. Venezuela has been in a state of emergency for years that hits the population hard, which reduces worryingly their purchasing power and the ability to have the money to survive.Therefore, Athena decided to install a machine in Cúcuta, Colombia, 100 meters from the border with the country commanded by Nicolás Maduro.
"We are trying to help a little as much as we can," Goldenhörn explains to iProUP.
During the first day dozens of people approached and this was repeated in the following weeks. The reason for the success is because Venezuelans need to receive remittances from abroad and with other alternatives - like Western Union - they have to do more than four hours of queue and pay very high commissions. As counterparty, operating with Bitcoin they immediately perceive their Bitcoins without intermediaries and exchange them for dollars in the machine.
"They are using cryptocurrencies because of the crisis, without any doubt, the bolivar is worthless and they need to trade in. Dollars are worth it, but with such violence it is very risky to handle cash, then Bitcoin, because it is electronic and the government is not in the middle, it takes on a unique relevance ", concludes the regional director.
With 17 ATMs in Bogotá, Barranquilla, Cali, Medellín, Bucaramanga and Cúcuta, Colombia stands as another regional benchmark for virtual currency ATMs, followed closely by Argentina.
Despite the fact that the Bitcoin price also faces some volatility problems, Latin American users find in this digital stronghold an alternative not to succumb to the fragilities of their respective economies.