Encrypted market value hits record high, Walmart pilots Bitcoin ATM operations

Crypto market capitalization reaches new high

Since October, with the launch of the first Bitcoin futures ETF in the United States, the valuation of the crypto industry has soared. Cryptocurrency is being considered by a growing number of Wall Street institution a legitimate asset class for investors. The total market value of cryptocurrencies is currently about 2.66 trillion USD, nearly twice the market value of silver (1.4 trillion USD) and exceeds the valuation of the world's largest public company, Apple Inc. (2.5 trillion USD).

Walmart pilots Bitcoin ATM operations

As the total market value of the crypto market hit a new high, retail giant Walmart was revealed to be joining forces with cryptocurrency ATM company Coinme to provide Bitcoin exchange services through its 200 ATM machines. In other words, as one of the world's highest-income companies, Walmart is allowing its customers to purchase Bitcoins at dozens of stores across the United States.

It has been reported that customers can buy Bitcoins on a cryptocurrency at a Walmart store ATM. A local reporter in the United States purchased a small amount of BTC at a Walmart ATM in Pennsylvania to verify the effectiveness of the service.

“Coinstar, in partnership with Coinme, has launched a pilot that allows its customers to use cash to purchase bitcoin,” Walmart communications director Molly Blakeman told reporters via email. “There are 200 Coinstar kiosks located inside Walmart stores across the United States that are part of this pilot.”

Note: Coinstar is known for allowing consumers to exchange cryptocurrency for fiat currency or gift cards, while Coinme is a crypto wallet and payment company that specializes in Bitcoin ATMs.

The process of purchasing Bitcoins with an ATM machine is as follows: After inserting a banknote into the machine, a paper voucher will be issued. The purchaser would then set up a Coinme account and complete a KYC background check. The machine charges a 4% fee for the Bitcoin option, and a 7% conversion fee for converting Bitcoins into cash.

Last month, a false news release claimed Walmart stores would accept Litecoins as a payment method, causing the market to rise and fall, leading the incident to be labeled a farce that should not happen in the industry – Walmart was once again linked with cryptocurrency. Out of cautious consideration, local media reporters in the US personally tested the ATM service, which was verified to be legitimate news.

Bitcoin ATM machines on the rise

The cryptocurrency ATM industry is expanding rapidly, partly because of the impact of the COVID-19 epidemic. Amidst a surge in cryptocurrency use in 2020, Coinstar announced plans to increase its existing 3,500 Coinme ATM machines to 7,000.

Coinstar began working with Coinme to provide Bitcoin purchase services in early 2019. It recently added 300 Bitcoin-enabled ATMs at Winn-Dixie, Fresco y Más, Harveys and other grocery stores in Florida.

Walmart has long been regarded an ideal path for encrypted financial services to make their foray into the mainstream. For a company with 4,700 stores and a market value of $409 billion, operating a pilot project of 200 Bitcoin ATM machines is merely a small change, but at least for now, Walmart has taken another step in the encryption industry.

Walmart and Coinme may share common interests and potential in providing encrypted financial services to low-income users, but it has yet to further elaborate on its encryption plan.

Compliance issues

The rapid growth of cryptocurrencies has also aroused the vigilance of regulators, worrying that stablecoins and other cryptocurrencies may pose risk to the stability of the traditional financial system. Seth Sattler, director of compliance at Bitcoin ATM provider DigitalMint, said that although the large-scale launch of Bitcoin ATMs may be a good sign for adoption, people still worry about compliance issues, such as anti-money laundering.

Over the past 18 months, DigitalMint, which accounts for 5% of the total Bitcoin ATM transaction volume, helped return $5 million to fraud victims. The person heading the company believes that large retailers need to ensure that they understand the suppliers they are working with and what measures the organization is taking to manage risk. Before cryptocurrency can be adopted on a large scale, it still needs to go through various adjustments in regulatory compliance to finally reach a balance point, which can promote social progress while avoiding the risk of violations.

(The above content represents personal views only, with the aim to learn more about the industry and market conditions, and does not make any investment reference or suggestions.)

(Blockchain Headlines)