According to official data from crypto companies operating in the country, there are approximately 30,000 to 40,000 cryptocurrency buyers who trade peer to peer. Punta del Este, will be the pilot test and if everything goes well, it is expected to be extended to other locations.

Uruguay will have its first cryptocurrency ATM and queries have exploded in the last few days. It will be called UTM and will be installed by two Uruguayan companies in the sector: InBierto and Urubit. There you will be able to buy and sell two digital currencies that were created by these companies.

According to local media, the ATM will be inaugurated on January 1st at the “Smart Point” located in Punta del Este. How does it work? The user must have downloaded a hot e-wallet, which are those connected to the Internet. The director and founder of inBierto, Adolfo Varela, explained to El País that they have one called U-Wallet, but anyone with the option to make a transaction with a QR code will be able to use it.

Once you have the virtual wallet, you go to an ATM where you can buy or sell. If you wish to purchase, you can choose between Ferret Tokens and Urubits. Then, if desired, they can be exchanged for other cryptocurrencies such as bitcoin in the virtual wallet.

To sell, the transaction is processed at the cashier and cash is received. Although the current version does not yet deliver physical money, it is within the company’s plans to make the option available for the official inauguration. The transaction cost within the network is 3%, which is redistributed among all the people who have a Ferret Tokens or Urubits in their wallet.

According to official data from crypto companies, Uruguay has approximately 30,000 to 40,000 cryptocurrency buyers who trade peer to peer. Punta del Este will be the pilot test and if all goes well, it is expected to be extended to other locations in the neighboring country.

“We believe that crypto implementation is going to go higher and higher. Today we are at the same level as the implementation of the Internet in 1999 or 2000, which was only 0.5% of the world’s population. The difference is that, at that time, having the Internet depended on the will of the States or companies that could develop the networks. Today, everyone has the internet, so the adoption of crypto is growing year by year. Moreover, the economic policies of cryptocurrencies are deflationary and protect the user from fiat money inflation. Therefore, as America is a continent that knows a lot about inflation, the adoption is going to be bigger and bigger”, said the director and founder of inBierto, Adolfo Varela, in dialogue with El País at the presentation.

In Uruguay there is no specific regulation for cryptocurrencies. The Central Bank of Uruguay (BCU) recalled in October that virtual assets are not “legal tender, as is the Uruguayan peso”, and “were not issued and are not backed by any central bank”.

It also indicated that the “issuance and trading of these instruments are not activities that are included” in its activities and, therefore, “are not subject to specific regulation”. It means that “those who operate with these instruments are not covered by the financial user protection measures provided by entities regulated and supervised” by the BCU.

According to the latest database of the Coin ATM Radar website, the countries with the largest ATM networks in Latin America are El Salvador, Colombia, Puerto Rico, Brazil and Mexico. Now, Uruguay will become one of them.

Source: Ámbito