The first crypto ATM will launch in Uruguay in January 2022. According to a local media report, the ATM will launch in Punta del Este, a resort city in the south of the country. The ATM, called a UTM, will be installed jointly by two firms, which are inBierto and Urubit. These ATM points will allow users to buy and sell two crypto coins called Ferret Token and Urubit, which were created by the two firms.
How It Will Work
Adolfo Varela, the founder of inBierto, explained that to use the ATM, users will have to acquire a hot wallet. They have already created one called U-Wallet. However, anyone with a hot wallet that can make electronic transactions using a QR code will be able to access the ATM.
With the hot wallet, a user can visit the ATM where they can buy and sell the two coins. Later, users can exchange the coins for other crypto coins such as Bitcoin. Like other ATMs, it will come with a charge, which is set at 3%. Users will be allowed to withdraw their coins for physical money. However, the option will only be availed during the official inauguration.
Why Is A Crypto ATM Necessary?
Varela noted that there were 30-40 thousand crypto users in the country. For many of them, they had to meet in person to make crypto trades. However, this could be solved with a crypto ATM.
Expansion Plans
Once the pilot succeeds in Punta del Este, the two firms plan to install an ATM in Montevideo during the summer. From there, they plan to expand to all countries in the region. Varela compared the rise of crypto to the rise of the internet. He compared its current level to that of the internet in 1999-2000. At the time, only 0.5% of the global population had access to the internet.
He also pointed to the deflationary nature of crypto, which protects users from inflation, which is a problem with fiat. According to him, since inflation was a major problem on the continent, as more people learn about the unique qualities of crypto, adoption would grow.
Supported Coins
The Urubit coin was created by Facundo Rodríguez, Santino Veiga and a team of dedicated professionals. They created Urubit, which according to recent estimates has a market cap of USD 2.5 million with over 13,000 transactions having been performed on the network. Urubit is in use in various local businesses in Paraguay.
Ferret token, developed by inBierto features a redistributive policy where a percentage of the transaction fee is redistributed to all Ferret token holders. It will be used as the native token of the inBierto ecosystem.
Crypto Laws In Uruguay
Crypto in Uruguay, like in many other nations, is not governed by specific regulations. In October, the BCU, which is the nation’s central bank, ruled that crypto coins are not legal tender in the country. It added that crypto coins and any activity related to them did not fall under any specific regulation. Varela stated that the nation should move to regulate crypto, which is a $3 trillion ecosystem, or the country would risk being left behind.
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