There are many great applications for cryptocurrencies, but one of the big issues is usability. Using your crypto funds to pay for goods and services is still tricky. Many merchants and vendors don’t accept Bitcoin or other cryptos as payment. This is where crypto debit cards and ATM installations can provide viable solutions.
Therefore, India now has its first crypto ATM in Bengaluru. The machine was installed by the currency exchange Unocoin. It allows users to withdraw and deposit rupees using their crypto funds.
India and Cryptocurrency
India has a strange relationship with cryptos. The central bank banned financial institutions from dealing with crypto-related companies. This creates a challenge for exchanges attempting operate leading to the closure of several crypto-related entities.
However, many in the industry remain resolute in their aim to promote cryptos countrywide. This first crypto ATM is located in a mall and must adhere to the specific rules enforced by the central bank.
While Unocoin is not technically a financial institution, an ATM is regarded as part of a financial institution. Unocoin addressed this issue in a unique way. According to them, they are merely trying to allow for “newer mechanisms and solutions to reduce the hurdle facing (regulatory) hurdles by the present central governments stand.”
Using this ATM
To deposit money into this ATM a person needs to be KYC compliant. They enter a user ID and they receive an OTP on their phone via SMS. The process confirms an individual’s account details after which the client can proceed with the deposit.
However, it takes longer to make a withdrawal. The client makes a request via the website and specify the amount they want to withdraw. The customer receives a 12 digit reference number, as well as an OTP. This allows the client proceed with the withdrawal.
Furthermore, this new ATM is not operational yet, but will be soon. Moreover, there are plans to install more of these ATM machines in Delhi and Mumbai.
It will be interesting to see how the authorities react to the news of the installation of these new crypto ATMs. Rumors are rife that the central bank is creating their own digital currency. Therefore, they are not entirely bearish.
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