Texas-based Bitcoin ATM operator, Coinsource has told Reuters that it would be making the Dai stablecoin available on its machines amid its preparation to launch a full remittance service.
Usually, stablecoins like Dai are collateral-backed cryptocurrencies pegged 1:1 to the U.S dollar. They are ideal for overcoming the wild price swings that have made other cryptocurrencies, especially Bitcoin impractical, for commerce and payments.
Coinsource per the report runs over 230 ATMs in about 29 states in the U.S and the District of Columbia and will be updating these machines to enable its users to buy, sell, and store Dai stablecoins.
The long-term goal would be for Coinsource to eventually become a remittance service provider.
“In remittances, people want to save as much value, and they don’t want to be subjected to high volatility that you see in bitcoin and other cryptocurrencies that can be very speculative,” Coinsource Chief Product Officer, Travis Gough said.
Users will be able to seamlessly send Dai and cash from one wallet to another through the machine and also inject funds into a portfolio and transfer them to desired recipient parties after completing a “know your customer (KYC)” screening requirements.
Additionally, the recipients can instantly redeem their transaction at any Coinsource machine or supported location, according to the remittance service rollout slated for sometime this year.
In the interim, however, the remittance service which is only available to U.S customers would practically reduce the complex architecture of cryptocurrency-based remittances.
Chief Executive Officer at Coinsource, Sheffield Clark, in a statement noted that the company planned remittance service would remove the barrier to entry for the regular consumer.
Transactions will automatically be stored and verified on the Ethereum blockchain, while recipients or senders do not require any knowledge of token-to-fiat or token-to-token back-end conversions, he added.
Meanwhile, we reported yesterday the total number of Bitcoin ATMs globally has surpassed 5,000.