- Colombia contains the most Bitcoin ATMs in Latin America.
- Its capital city Bogota holds 34 Bitcoin ATMs.
- Venezuelans in Colombia use Bitcoin ATMs the most.
Athena Bitcoin, American ATM network stated in 2018 that Venezuelans in Colombia use the Bitcoin ATMs the most. They added that several freelancers in Colombia are paid in Bitcoin and thus withdraw their earnings through Bitcoin ATMs.
The reason for the rise of Bitcoin ATMs
Colombia has taken extraordinary measures to legalize cryptocurrencies, and as a result, is the third country with the most significant number of crypto enthusiasts. Last month its government accepted a trial of crypto payments, which will continue until 31st December. September also saw the Colombian Ministry of Information Technology (MinTIC) asking the public sector to take on blockchain technology.
2017 witnessed a massive market for Bitcoin in Colombia above any other country in the continent. This is partly because Colombian investors tend to choose convertible investments. Plus, Bitcoin payments are nameless – there are no documents or stipulations. Colombians also tend to seek investment opportunities with small sums, so Bitcoin is deemed productive.
A 2019 survey conducted by Paxful, a crypto exchange, revealed an upswing in Bitcoin and Etheruem among Colombians. Its findings show that 80 percent were prepared to buy into crypto. This is no surprise as Paxful actioned over $1 million from Colombian traders in 2019.
Jarek Duque, chief analyst for the Latin America region at UAE-based financial institute Tradepedia LLC, revealed that Mexican and Colombian cartels use cryptocurrencies for money laundering. He added that Colombia has insufficient knowledge of the financial industry – only one percent has mastery over it. Banking is scarce, and the present economic structure is undeveloped.
Other South American countries namely Venezuela and Argentina have been predicted to become a centre for crypto due to their governmental and financial upheaval.