Transferring money over traditional channels may involve a lot of queuing in lines these days. Authorities around the world are trying to prevent large groups of people gathering in confined spaces to reduce the risk of transmitting the coronavirus infection. Remittances are a lifeline for people in many countries and cryptocurrency ATMs provide a way to send cash to loved ones without visiting a crowded bank office.
Crypto ATM Transfers Safer Than Bank Wires in More Than One Way
The COVID-19 epidemic has already closed many public spaces across the globe. Those that remain open are subject to restrictions regarding the number of people allowed to gather at one time. Banks and money transfer institutions are likely to remain open even when many other businesses are closed. Visiting any office during the coronavirus outbreak, however, is considered a high risk by health officials. Not to mention cash withdrawal limits that can be imposed at any moment during crises like this one.
Cryptocurrencies have proved to be a useful instrument for frictionless cross-border payments, facilitating fast transactions with low fees. They can always be used to transfer value on a peer- to-peer basis when two parties want to fully benefit from their advantages over traditional money. And Bitcoin ATMs – teller machines that support purchases and sales of various coins – can be employed for transactions between two fiat currencies using crypto as a medium.
In this case, a sender can buy the cryptocurrency equivalent of a fiat amount they want to send from an ATM near their location. In many countries that shouldn’t be a problem as over 7,000 teller devices are now operational worldwide. The digital coins can be sent with a crypto transaction to a recipient who can then convert them back into fiat; a local currency for example.
Using Bitcoin ATMs to send money abroad is a safe option, not only because of the high level of security for the transferred funds but also in terms of lower health risks as you can avoid visiting crowded bank branches or standing in lines in front of them. It is a convenient way to transfer financial assets quickly and at low cost although it does require the sender and the receiver to be familiar with bitcoin and comply with national regulations and restrictions in some cases.
How to Send Cash Using Bitcoin to Someone Who Doesn’t Know a Lot About Cryptocurrencies
There is a workaround that allows a crypto savvy person to send remittances to someone who might not know a lot about Bitcoin and doesn’t even have a cryptocurrency wallet. Moreover, it is possible to use only one ATM and still successfully complete a money transfer onchain.
The recipient can initiate a transaction through a two-way device, take a picture of the generated QR code and share it with the person who is supposed to send the money, the Coinatmradar tracker explains in a tip for BATM users. Then the sender can scan the QR code and transfer the crypto to that address. Later on, the recipient can withdraw the cash in local fiat directly from the teller machine.
Digital remittances have experienced steady growth over the past few years, with the total value of transactions reaching almost $96 billion in 2020, an annual increase of more than 21%, as news.Bitcoin.com reported in February. According to data compiled by Statista, the number of users in the segment has grown similarly, by over 20%, creating an opportunity for cryptocurrencies. Bitcoin ATMs provide a safe and easy way to send crypto to people in need of cash, which is becoming an emergency item during the coronavirus pandemic.
Have you used a Bitcoin ATM to send cash to someone? Share your thoughts on the subject in the comments section below.
Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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