Texas-based Bitcoin ATM maker Coinsource is adding a stablecoin to the mix. The company is expanding to include the Dai stablecoin in its machines, according to a report in Reuters. Coinsource is also reportedly gearing up to launch a remittance service, and Dai should shield users from the volatility that’s inherent in the cryptocurrency market. Dai is a decentralized stablecoin that’s built on the Ethereum blockchain and is pegged 1:1 with the U.S. dollar.
The number of bitcoin ATMs is on the rise around the world. CCN.com previously reported that 5,000 machines have been installed globally since 2013, the first of which emerged in Canada. The U.S. is the leading jurisdiction for bitcoin ATMs, with more than 3,200 machines sprinkled across the country.
Coinsource operates more than 200 of them across more than two-dozen states and Washington, D.C. In the coming months, these machines will also be equipped to transact in Dai on Ethereum, giving users the ability to buy, sell, send, or “hodl” the stablecoin.
Ultimately, Coinsource plans to launch a remittance service in the U.S. This past week has reminded investors just how quickly the price of a cryptocurrency can change, and while the value of the U.S. dollar fluctuates as well, it doesn’t produce anything near the wild swings that bitcoin experiences.
Coinsource’s Chief Product Officer Travis Gough told Reuters:
“In remittances, people want to save as much value and they don’t want to be subjected to high volatility that you’re seeing in bitcoin and other cryptocurrencies that can be very speculative.”
Once customers complete know-your-customer (KYC) procedures, they will be able to use the Coinsource ATM to send DAI between wallets. The person on the other end of the transaction can access the funds at any Coinsource machine. It’s a coup for Maker, which is behind Dai, given the heated competition in the stablecoin market.
Last modified: June 23, 2020 7:37 PM UTC