Bitcoin ATM in Africa – Critical Analysis By TestBoo
Bitcoin ATM is in a way different from normal traditional bank ATM. Inasmuch as it operates like a normal cash machine, it does not dispense cash like the ordinary local banks cash machine. With Bitcoin ATM, you can buy,sell and send Bitcoin .
The first Bitcoin ATM was installed in Vancouver, Cnada in 2013. This is followed by the introduction of an Bitcoin ATM in a cigar bar in the United States inn New Mexico precisely. This is subsequently followed by another one installed in Washington.
The increase in market has invariably increased the number of Bitcoin ATM machines all over the world, Africa inclusive. It should be noted that North America leads the in the availability of Bitcoin ATM With 71.9 percent of Bitcoin ATMs, America leads the rest. This is followed by Europe with 23 percent and Asia with 2.3 percent while a minor rate of 1.3 and 0.1 percent goes to Australia and Africa respectively.
With the growth in interest in Bitcoin in Africa, there are a total of 9 Bitcoin ATM machines in Africa at the moment. South Africa, as the giant in bitcoin adoption in Africa, has five cryptocurrency ATMs which are situated in Johannesburg, Pretoria, Nelspruitand Cape Town.
In Kenya, the first Bitcoin ATM was installed in Nairobi , the capital of Kenya. Operated and managed by Bitclub Network with a minimum of 500 Kenyan shillings worth of bitcoin and litecoin . It is a fiat to cypto ATM only, No cash withdrawal.
In Uganda, the first and only Bitcoin ATM in Uganda is managed by the Kampala post office which is run by KIPYA BIT2BIG.
Amazingly we have Bitcoin Atm in East African country of Djibouti. The Bitcoin ATM which is located at Appart Hôtel Moulk,and operated by Group DOS. There is a plan to introduce two more Bitcoin ATMs in Djibouti.
In Zimbabwe, Golix, the first ever cryptocurrency exchange in Zimbabwe and Africa is incharge of the management and running of the only Bitcoin ATM in Zimbabwe. The said Bitcoin Atm is located in the Golix office in Harare.
In line with Wikipaedia’s explanation of what Bitcoin Atm is , a Bitcoin ATM is a kiosk that allows a person to purchase Bitcoin by using cash or debit card. Some Bitcoin ATMs offer bi-directional functionality enabling both the purchase of Bitcoin as well as the sale of Bitcoin for cash. In some cases, Bitcoin ATM providers require users to have an existing account to transact on the machine.”
It should be noted that there two kinds of Bitcoin ATM, namely; cash kiosks and ATMs, both of which are connected to the internet, allowing for cash and debit transaction and issuance of receipt.
Bitcoin cash kiosks has a similar look with traditional ATMs, but do not connect to a bank account and instead connect the user directly to a Bitcoin exchange. Bitcoin-enabled ATMs are traditional ATMs and connect to a bank account to allow for a cashless purchase of bitcoin.”
Inasmuch as the use of Bitcoin ATM in Africa is with high charges , the benefit for those individuals and investors who are desirous of getting started with Bitcoin investment cannot be overemphasized.
In South Africa, there is a total of Seven(7) Bitcpoin ATM , located in four different cities, namely, Cape town(3), Johannessburg(1), pretoria (2) and Nelspruit(1).
It should be noted that all over the world, there are about 4000 Bitcoin ATMs, with the highest number in United States of America, followed by Canada. The first Bitcoin ATM in Canada was installed in 2013, in a coffee shop in Vancouver.
Today, North America leads the pack with 71.9 percent of Bitcoin ATMs, followed by Europe with 23 percent and Asia with 2.3 percent while Australia and Africa have a meagre 1.3 and 0.1 percent respectively.
It should be pointed out that all crypto ATM are expected to conform to existing rules and be duly registered and licenced . This is in line with the statement released by Naveda. The statement provides that;
“Any entity that facilitates the transmission of or holds fiat or digital currency by way of brick-and-mortar, kiosk, mobile, internet or any other means, should contact the NFID to request a licensure determination.”
To run a Bitcoin ATM operation ,First and foremost, the intending operator will need to check what the legal and regulatory situation is in the country or state he wants to run the operation. The legal framework for operating a bitcoin teller machine can differ significantly from jurisdiction to jurisdiction and not complying with laws when it comes to cryptocurrencies is a sure way to suffer serious legal consequences.
Therefore, it is highly advisable to consult with a lawyer for a serious and painstaking legal guide before launching a bitcoin business to ensure you will not end up on the wrathful hand of the law.
It is obvious that the scarcity of Bitcoin ATM in Africa is still as a result of African banking sectors to accept cryptocurrency as a means of development and not seeing them as a threat to their success. Upon realizing that existence cryptocurrency and Bitcoin ATM is in no way a threat to the banking sector, the banks will begin to assist intending cryptocurrency investors and Bitcoin ATM operators and this will invariably aid the development and increase in the number of Bitcoin ATMs in Africa.
Note that Bitcoin ATM is just like the normal traditional ATM machines. The only notable difference is that, with Bitcoin ATM, you can only send and buy Bitcoin and cannot withdraw from it. Inasmuch as the decentralized nature of bitcoin makes it immune to Government and central authority interference, it should be noted that there is a regulation guiding whoever wants to go into Bitcoin or cryptocurrency exchange or the management and operation of Bitcoin ATM. Thus for anyone to engage in bitcoin exchange or operation of Bitcoin ATM, such person or business organisation must be duly licensed.