This week, Honduras installed its first cryptocurrency ATM as demand for digital assets’ continues, following neighboring El Salvador pushing to make bitcoin legal tender.
The ATM, known as “la bitcoinera” was installed in an office tower in the capital of Tegucigalpa, Honduras, by Honduran firm TGU Consulting Group, to provide them access to convert local lempira currency to bitcoin and ethereum.
The installation of the ATM in Honduras aims to educate the people on digital assets through on-hand experience. There was still no automated way to buy cryptocurrencies in the country, explained Juan Mayen, chief executive of TGU.
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Mayen added, “You had to do it peer-to-peer, look for someone who was willing to do it, meet in person and carry X amount of cash, which is very inconvenient and dangerous given the environment in Honduras.”
To make transactions using the service, users need to scan official identification and input personal data such as a phone number as their KYC measures. He also addresses his wishes to add more ATM units if the service sees an increase in public demand.
Many software developers in Honduras are already making their transactions in cryptocurrencies, said Mayen. In 2020, Hondurans living abroad – mainly the United States, sent $5.7 billion, about 20% of the country’s gross domestic product (GDP), in remittances. Thus, digital assets’ implementation will be a cheaper alternative than sending remittances.