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One of the main drawbacks most Bitcoin ATMs are faced with, is how they do not allow users to sell cryptocurrency in exchange for fiat. Most people think of teller machines as a way to withdraw cash, rather than buying bitcoin. BitRD, a company active in the Dominican Republic, plans to change all of that in the coming months.
BitRD Improves Bitcoin ATM Cash Withdrawals
Unlike most Bitcoin teller machines in operation right now, BitRD wants to improve cash withdrawals. The company targeting consumers in the Dominican Republic, one of the many areas where Bitcoin can make a significant impact over the coming years. After all, it is a far cheaper solution compared to other traditional solutions.
Remittances play an integral part in the Dominican Republic economy. Sending money to the country can be quite expensive, as one has to rely on third-party service providers. With Bitcoin, it is possible to circumvent these decentralized entities and their high fees. No one likes to pay between 5 and 15% per remittance transfer, even if it is the only option to send money overseas.
Unfortunately, spending Bitcoin in the Dominican Republic is still quite difficult. Very few retailers accept Bitcoin payments directly, and there are no real third-party service providers to take advantage of. For example, a Bitcoin-to-wire transfer service could go a long way in the country, despite a large portion of the population remaining unbanked as of 2016.
This also means Bitcoin ATM operators have a difficult time attracting new customers, as there is no real use case to spend Bitcoin for most people. In fact, one could argue residents would rather look to sell their Bitcoin in exchange for national currency. Not everyone wants to go through an exchange and verification procedure to do so, however.
This is where BitRD comes into the picture, as their Bitcoin ATM network now allows users to sell BTC in exchange for either Pesos or US Dollars. This is quite a significant development, to say the least, as a small number of Bitcoin ATMs around the world operate as two-way machines right now. Do keep in mind there is a fee associated with selling Bitcoin in exchange for fiat, though. BitRD currently operates two machines in Santo Domingo, one exchanging to Peso, whereas the other pays out US Dollars.
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