You Can Now Buy, Sell Stablecoins on Canadian Bitcoin ATMs

Bitcoinist January 9, 2020
Updated 2020/01/09 at 1:01 PM
3 Min Read

The crypto ATM of Instacoin now offer dollar-pegged stablecoins for deposit and withdrawal, including the much-disputed Tether (USDT). The leading crypto ATM operator in Canada will add a total of seven stablecoins to its devices.

ATM Selection Covers Most Major Stablecoins

The selection goes beyond USDT, which is the most liquid and widely used asset. Among dollar-pegged coins backed by assets in a bank, the devices will offer USDCoin (USDC), TrueUSD (TUSD), Paxos (PAX), and Gemini Dollar (GUSD).

The algorithmic stablecoin DAI will be available both as single-collateral and multi-collateral versions. Stablecoins offer a hedge against price fluctuations, as well as a cheaper way to send and receive the assets.

The ATMs, which are essentially offer fast brokerage services, offers a new level of anonymity to buyers. Currently, the ATMs allow purchases and sales of up to 10,000 CAD per day, so far without identification. When it comes to KYC, this access point may surpass the limits of some exchanges, which may require ID verification for as low as $1,000.

Since Instacoin’s ATMs operate entirely with cash, banking information is also not revealed to the device. The only thing that communicates with the ATM are wallets that hold the assets.

However, trying to liquidate the stablecoins through their central service sites may be subject to complete KYC. Coins like TUSD, PAX and others are redeemable for cash, but in exchange for creating an account with the issuer and presenting personal credentials.

Stablecoins Drive Trading Peaks in Past Months

Stablecoins have become one of the drivers of growth in the crypto space. The most popular assets are pegged against the US dollar, with smaller markets for CAD, GBP and EUR-derived stablecoins.

Dollar-pegged stablecoins can be sent to any exchange globally, to trade or exchange for other assets. They are also a perfect store of value, with the exception of DAI, which fluctuates around the dollar peg.
In 2020, USDT has given up some of its share, and now stands for about 96% of the stablecoin market, down from above 99% in the past. USDC is the second most abundant stablecoin, which is often used as a switch to fiat. Gemini’s coin, GUSD, however, looks like a stablecoin on its way out, as its supply shrank from about 20 million to about 3.9 million coins.

Currently, almost all stablecoins are also ERC-20 tokens based on the Ethereum (ETH) network. Holding and sending the tokens may be subject to gas fees or delays.

What do you think about stablecoin ATMs? Share your thoughts in the comments section below!

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