Colombia is a crypto ATM hotspot. While Colombia may not have the same level of cryptocurrency adoption as Venezuela or certain African countries. It does have the second-highest number of cryptocurrency ATMs in the area. This could be due to Colombia’s high cash usage rate. As a result, bitcoin ATMs have become a critical instrument for adoption in the country.
According to reports, Colombia is experiencing a bitcoin ATM boom right now. Since it has the second-highest number of these machines in the region. Colombia was in first place until recently, when El Salvador bet on bitcoin and proclaimed it legal tender. Colombia already has 50 cryptocurrency ATMs, although the reasons for this boom are still unclear to some.
The country, Colombia has not been known for its cryptocurrency adoption. And the government’s participation in cryptocurrencies has been restricted to a regulatory sandbox. One reason is that one reason is that exchanges and banks are used. Cryptocurrency ATM firms, on the other hand, appear to be becoming more interested in delivering their services there. This could be due to the country’s proximity to Venezuela and the active business interchange that occurs between the two countries.
Alejandro Beltrán, CEO of Buda, a Latam-based exchange, told Forbes about this:
Colombia is still a major crypto transaction hub, and so is Venezuela, in the top three of the global adoption index. ATMs are a solid alternative for consumers.
Explanations and Numbers
The cryptocurrency ATMs are largely concentrated in Bogota, the country’s capital. There are 29 in total. Six are in Medelln, three in Bucaramanga and Pereira. While the remaining ones dispersed throughout the country. This clearly demonstrates that the majority of crypto ATMs are located in urban regions, far from the borders. This finding appears to rule out cross-border transactions as a major driving element behind the ATM push. Beltran, on the other hand, has a different take on the boom.
This country, Colombia, is one of the most cash-heavy countries in the area. And these ATMs help consumers manage and transact funds that would otherwise be unable to do so efficiently. Due to the country’s banking sector’s current restrictions. Beltran concluded by saying:
We believe that this will be one of the sector’s most significant contributions. To ensure that the ecosystem continues to grow vertically.
Colombia and Cryptocurrency
Colombia’s regulatory framework for virtual currencies restricted, making it difficult to start a bitcoin business there. The Colombian Financial Superintendence (SFC) has effectively banned banks from providing financial services to bitcoin firms. As a reason, bitcoin companies in Colombia may not be able to use banking institutions. Colombian officials also decided in 2014 that authorized financial institutions not permitted to own or invest in cryptocurrency. As a result, cryptocurrency-related businesses may be unable to raise funds from licensed financial institutions. As a basis, cryptocurrency-related firms in Colombia must operate independently of banks and other financial institutions.
Several bitcoin companies have gone out of business due to the country’s negative legal environment. As a basis of Colombia’s anti-cryptocurrency policies, numerous cryptocurrency businesses have shut down. For example, Colbitex, a cryptocurrency exchange, only lasted a week before closing due to “authorities blocking its activities.” Furthermore, some crypto-related businesses have ceased operations as a result of Colombia’s warnings. About the risks involved with virtual currency. The SFC released materials in 2018 that highlighted the “risks” of bitcoin. As a reaction, many Colombian banks have cancelled cryptocurrency-related accounts. Several bitcoin startups in Colombia is a crypto, including Buda.com, have suffered as a result of these closures. To summarize, Colombia’s warnings and anti-cryptocurrency policies have rendered some cryptocurrency-related businesses unable to operate.