South Africa’s First Cryptocurrency ATM Improves Access To Bitcoin In Johannesburg

South Africa’s First Cryptocurrency ATM Improves Access To Bitcoin In Johannesburg

With cryptocurrency adoption on the rise Bitcoin and other crypto ATMs have been increasing too. Photo – AP – Kin Cheung

South Africa’s first cryptocurrency ATM has officially launched in Johannesburg, making it possible for South Africans to purchase various cryptocurrencies via the machine.

A South African blockchain firm called Vendibit established its first commercial cryptocurrency ATM in the country’s financial hub, placing it in the Spar-Northwold supermarket, according to IOL.

The ATM, which is known as a VTM machine, allows users to buy a variety of cryptocurrency options including Dash, Bitcoin, Litecoin, and Ethereum using South African Rands, linked to their smartphone cryptocurrency e-wallets.

Before they are able to use the cryptocurrency machines, users will need to open an e-wallet through established companies such as Luno and Wirex.

Daniel Cappiello, Vendibit senior blockchain consultant, explained the demand and functionality of the new cryptocurrency ATM.

“The rapid spread of blockchain technology and Vendibit VTM machines are proof that the public is demanding access to the future, today. Most people are becoming familiar of blockchain and cryptocurrencies thanks to names like Bitcoin, Litecoin and Ethereum,” Cappiello said, according to Techfinancials.

“The VTM machines allows customers to buy cryptocurrencies such as Bitcoin, Litecoin and Ethereum with cash, with their smartphone-cryptocurrency e-wallets. They will also be able to send and receive peer-to-peer, without a bank. Worldwide, in the U.S., Europe and Asian countries, businesses are rapidly expanding their acceptance of cryptocurrencies in day-to-day peer to peer and business transactions,” he said.

“Vendibit believes the customer should always come first. Cryptocurrencies are still new in South Africa, so making information easily available and understandable to a broad public is vital. It is key that people understand that the price of cryptocurrencies like Bitcoin is volatile,” he added.

While adoption is growing, there has not been a great deal of clarity regarding regulation of cryptocurrencies in South Africa. The South African Revenue Service (SARS) recently revealed, however, that cryptocurrencies will be subject to normal income tax rules, iAfrikan reports.

Another cryptocurrency ATM for Africa

In April South Africa’s neighbor Zimbabwe saw their first cryptocurrency ATM launched in Harare, with users able to choose between purchasing either Bitcoin and Litecoin, according to Ventureburn.

Cryptocurrency exchange platform Golix is responsible for the ATM in their offices in the Zimbabwean capital, with people in the country embracing cryptocurrencies such as Bitcoin.

In the confusion and concern surrounding the potential for hyperinflation to affect Zimbabwe, bitcoin has become a viable and popular means of transacting in the country with regards to big ticket items, driving adoption and the price of the cryptocurrency on the local exchange.

Before the launch of the South African cryptocurrency ATM, only Zimbabwe and Djibouti had crypto machines in Africa from which the public could purchase Bitcoin.