Although Colombia is not a country that has adopted cryptocurrencies from Venezuela or some African countries, it is the country with the second highest number of cryptocurrency ATMs in the Latam region. The reason behind this could be that Colombia has a high percentage of cash usage. This makes cryptocurrency ATMs a very important tool for adoption in the country.
Colombia, Crypto ATM Haven
There is currently a boom in cryptocurrency ATMs in Colombia, as it is the country that hosts the second highest number of such ATMs in the region. Columbia was in first place until not too long ago, before El Salvador made its bet on bitcoin and declared the main cryptocurrency legal tender. Currently, there are 50 cryptocurrency ATMs in Colombia, but the reasons for this boom are still unclear to some.
Colombia is not particularly known for its adoption of cryptocurrency, and its involvement in cryptocurrencies at the government level was limited to a regulatory sandbox that exchanges operate with banks. However, there appears to be a growing interest from cryptocurrency ATM companies to offer their services there. This could be due to the proximity to Venezuela and the dynamic trade that occurs between these two countries.
About this, Alejandro BeltrÃ¡n, CEO of Buda, a Latam-based exchange, told Forbes:
Colombia continues to be a major crypto center for transactions, and with Venezuela in the top 3 of the Global Adoption Index, the border position makes ATM systems good alternatives for consumers.
Figures and explanations
Cryptocurrency ATMs are mainly concentrated in the country’s capital, Bogota, where there are 29 of them. Six are located in MedellÃn, three are in Bucaramanga and Pereira, with the others scattered in other locations. This clearly shows that most crypto ATMs are concentrated in urban areas, far from borders. This fact appears to rule out cross-country transactionality as a major driving force behind the push for ATMs. However, Beltran has another theory on this boom.
Colombia is one of the top countries in the region for using cash, and these ATMs help customers manage and process funds that would be impossible to use efficiently with the current limitations of the country’s banking sector. country. In conclusion, Beltran said:
We believe that this can be one of the great contributions of the sector for the ecosystem to continue to grow vertically.
What do you think of Colombia’s cryptocurrency ATM boom? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.