Bitcoin ATMs are coming back to life in Japan after 4 years of hibernation
Bitcoin ATMs are coming out of hibernation in Japan for the first time since the 2018 crypto winter – allowing residents of Osaka and Tokyo to trade cryptocurrencies from devices other than their smartphones or personal computers.
Gaia Co., Ltd, a local cryptocurrency exchange company, revealed on Wednesday that it will soon debut crypto ATMs, or “BTMs,” and has set plans to roll out 130 of these machines that support Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) over the next three years.
A Bitcoin ATM is an Internet-connected terminal that allows consumers to exchange fiat currency for Bitcoins. BTMs allow users to sell Bitcoin for fiat money.
Gaia president Motohiro Ogura emphasized that this is the first time a local central has installed cryptocurrency ATMs in the country.
“It’s comforting to know that BTM can be changed into cash immediately. Virtual money tends to attract the most interest as an investment vehicle, but it also has the potential to be used as a settlement currency. I want to expand,” he said.
Downtown Tokyo. Image: TripAdvisor.com.ph
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These systems differ from traditional ATMs, which allow bank customers to physically withdraw cash from their accounts. These types of ATMs are instead blockchain-based transactions that transfer cryptocurrency to a user’s digital wallet, typically by QR code.
The catastrophic Coincheck breach in early 2018 dealt a severe blow to the Japanese cryptocurrency sector, rendering crypto-ATMs in key commercial locations almost useless.
In early 2018, hackers breached their firewalls and carried off around $500 million worth of NEM tokens, prompting lawmakers to shut down all cryptocurrency ATMs across the country.
In recent years, the number of bitcoin ATMs around the world has expanded significantly. The United States is currently the undisputed leader with nearly 34,000 machines.
BTMs are growing at a rapid pace
CoinATMRadar, a platform dedicated to measuring the number of cryptocurrency ATMs in the world, revealed in December 2017 that the number of bitcoin ATMs worldwide has increased by more than 100 percent in the past year.
According to sources, the reintroduction of BTMs in Japan will be a first for the country’s crypto economy, as no regulator-approved Japanese company has ever operated these crypto-dispensing machines.
The Bitcoin ATMs will allow customers to withdraw up to $747, or 100,000 Japanese yen (JPY), per transaction, and $2,243, or 300,000 yen, per day. As part of anti-money laundering (AML) efforts, withdrawals are limited.
Bitcoin is currently trading at $23,202, down 2.5% over the past week, according to statistics from Coingecko.
BTC total market cap at $442 billion on the daily chart | Source: TradingView.com Featured image from Twitter, chart from TradingView.com
