São Paulo to get first bitcoin ATM in South America

São Paulo to get first bitcoin ATM in South America

Summary: The machine will be available for use at a major tech conference next week

TOPICS: Banking, Mobility

The first bitcoin ATM in South America will be up and running at Brazil's largest technology and innovation event next week.

The machine that will be in operation at Campus Party in São Paulo was imported by Brazilian company Mercado Bitcoin at a cost of $10,000 - the equivalent of 11.5 bitcoins - and was designed and manufactured in Portugal by Lamassu.

It is a mix of conventional ATM and vending machine, whereby users put in normal currency and receive bitcoins back via a mobile phone app using a QR code that is scanned by the equipment.

Only Brazilian reais will be accepted by the equipment and the transaction fee charged by Mercado Bitcoin is 2.5 percent.

Thousands of people are expected to attend the week-long tech fest, but the company behind the initiative says it does not have an approximate figure of how many people might use the machine.

"We hope that the machine will pay itself by the end of this year, but we still have no references around the number of transactions it will generate," Rodrigo Batista, chief executive at Mercado Bitcoin, told newspaper O Estado de São Paulo.

According to Mercado Bitcoin, the next location of the equipment is still unknown, but talks are ongoing around moving it to one of São Paulo's financial centers.

Currently, Canada is set to become the top bitcoin ATM location in the world, with three cities in the country to have the machines installed in the coming weeks in Ottawa, Montreal and financial hub Toronto.

Topics: Banking, Mobility

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  • So stupid.

    Bitcoin will be relegated into the trash dump of history and thousands of people will wonder why they threw perfectly good real-world currency into a stupid 'let's pretend we're rich' scheme.
  • Does it work the other way

    "whereby users put in normal currency and receive bitcoins back via a mobile phone app using a QR code that is scanned by the equipment"

    So can you put Bit coins in and get money out?
    • both directions

      This is posible only via Robocoin ATM. Lamassu is only FX -> BTC. Robocoin https://robocoinkiosk.com/ can do BTC -> FX and FX -> BTC , but it's 20,000 dollars per 1 ATM.
  • Is the price correct?

    According to Lamassu website, the price is US$5,000. Are you sure it's 10,000 US dollars? The installation is practically non existent. Look how this thing looks like here: http://www.youtube.com/watch?v=N2Tb9Z6fxcM It's a very small box. What could cost another 5000 dollars?
    • Yep

      It's probably right. Here in Brazil we have huge taxes for importing electronics, they aprox. double the international price. So sad to be in a Statism ill country.
      Vinícius Felizardo
    • Taxes and overseas shipping

      Like Vinicius said, Brazilian import duties are steep, and there are other taxes levied as well (such as, for example, "Federal Tax on Industrialized Products"). Moreover, the article says the ATM was manufactured in Portugal. Shipping a large device from Europe to South America isn't cheap. In bulk imports, shipping costs are diluted, but it was only one machine.
  • Bitcoin ATM

    Bitcoins will succeed on a large scale remains to be seen, but they have already gotten some traction in Europe
    Bitcoin ATM