The European country is the fifth on a global scale, with the largest number of cryptocurrency ATMs. The cities with the most devices are Barcelona, Madrid, Malaga, and Palma de Mallorca.

According to Coin ATM Radar, Spain is the fifth country with the most Bitcoin (BTC) automated teller machines (ATMs) installed worldwide, with a total of 103 devices. The platform indicates that, on average, a device of this type is installed in the European country every three days.

The scale that the indicator displays is the result of two variables: the installations done in the last 60 days and the speed calculated based on the last seven. The relationship shows the installation of 0.3 ATM per day, that is, in theory; there is one new device in Spain every three days for the purchase or sale of cryptocurrencies such as Bitcoin.

When expanding the scale into all of Europe, the ratio rises to 0.7 ATMs per day. In other words, an average of two ATMs is installed every three days, which means that Spain accounts for half of the equipment installed on the continent.

It is possible to configure Bitcoin ATMs according to the needs of each buyer or investor. There are unidirectional ones, which only distribute currencies to wallets, or bidirectional ones, which allow trading cash for cryptocurrencies or vice versa.

The price of the equipment may vary depending on the added features and the hardware used. An ATM that processes Bitcoin can cost between USD 3,000 and USD 6,500, according to manufacturer General Bytes. Spain is the third country with the most ATMs of this type in Europe, only behind the United Kingdom (277) and Austria (149).

The scope of ATMs in this country covers the main cities, with special emphasis on Barcelona (25), Madrid (15), Malaga (11), Palma de Mallorca (10), Seville (7), and Valencia (6). Coin ATM Radar states that there are 103 computers in Spain, but it shows 85 devices in another statistic, which could be the number that remains active.

The country with the most bitcoin ATMs is the United States, with 7,439, that is, 76% of the devices are concentrated in a single nation. In Latin American, Colombia (59), Panama (18), Dominican Republic (16), Argentina (13), and Mexico (9) lead the ranking.

Bitcoin, Altcoins, and ATMs in Spain

All the reported ATMs accept Bitcoin, while 67 of them also process altcoins including Ether (ETH), Litecoin (LTC), Dash, Bitcoin Cash (BCH), Ripple (XRP), Zcash, and Monero (XMR). Of the total equipment installed, 49% of the ATMs allow buying and selling cryptocurrencies, while the other 51% only allow buying them.

One important aspect regarding Bitcoin ATMs is that of the fees that they charge for each transaction. Given that these can vary significantly, users should always be aware of the amounts to pay.

In the case of Spain, the fees for buying BTC are between 4% and 10% of the amount traded. Meanwhile, the fees for selling cryptocurrencies reach up to 7% per operation.

Among the manufacturers with the most equipment installed in Spain, the most prominent are the General Bytes (41), Shitcoins Club (19), and Bitnovo (11). Regarding the operators, Shitcoins Club leads the list managing all its devices, followed by Bitbase (15), Bitnovo (11), Conquistadores (9), Kurant (5), and Iberobit (5).

The boom of ATM installation continues to boom worldwide, having reached 7,386 active Bitcoin ATMs until April. Last September 1^st, the figure rose to 9,524 units, which represents an increase of 2,138 devices. This translates into an average of one installation of 14 devices everyday day, considering the new ATMs.

By Alexander Salazar

The wallet remained active for only a few hours in the Construction Bank mobile application. The service allows the recharging of bank cards, transfers, and payments with QR codes.

Last August 29^th, China Construction Bank (CCB) activated a wallet for the digital yuan but had to disable it from its mobile application due to the large number of users who reportedly requested it. Chinese local media reported that the application showed the option “digital currency” to registered users.

The experimental wallet would allow the recharging of bank cards, transfers, and payments with QR codes. The deactivation would have occurred because users received the news too quickly.

Some hours later, the enthusiasts who tried to participate in the registration received a message in which the financial institution asked them to be patient since the launch of the wallet was not yet official.

“This feature is not yet officially available to the public. Please wait patiently,” received the users of the mobile application trying to enter for the option “digital currency”. The bank did not make clear when they would reactivate the registration or if customers must meet certain requirements to request the wallet.

The digital yuan is the Chinese bet for its Central Bank Digital Currencies (CBDC) project, which is currently in a trial period. The official name of the digitization currency plan is Digital RMB (Renminbi or “the people’s currency”), that is, the digital version of China’s legal tender, of which the yuan is the basic unit.

China is the country that has advanced the most in the field of CBDC, with multiple tests under development in different regions. Recently, tests with the digital yuan have extended to the Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area.

The Central Bank of China itself clarified that the tests occur in the retail branch of the economy; this includes small businesses and establishments that process low-value transactions. The Central Bank of China explained the abovementioned because of the rumor that some people had paid the situation n the town of Shenzhen with the digital version of the national currency. 

Other countries like the United States are also making decisions regarding CBDCs. The North American nation announced through the Federal Reserve that it was researching on the potential development of a central bank digital currency. There is even talk of an instant payment system called FedNow.

The transformations of the financial and monetary world continue to occur every day. One of the main elements that have led to digitization was the emergence of Bitcoin as a network for transferring value without the participation of intermediaries.

Finally, the most important cryptocurrency on the market has characteristics that have led the banking system to want to emulate it through the creation of Central Bank Digital Currencies. It is only a matter of time for the leading banks of the world to fully adapt to the digital currency system, both centralized and decentralized.

By Alexander Salazar

The rapid growth of the FinTech industry is demanding the enactment of laws. The challenge is to strike a balance between growth, public trust, and development.

Rosario Celedón, one of the members of the Board of Directors of the Commission of Chile for the Financial Market (CMF), states that the fast expansion of the FinTech industry has also accelerated the creation of a regulatory framework. However, she believes that one of the main challenges will be the enactment of laws that do not compromise either technological development or innovation.

In recent days, Celedón said that the rapid expansion of the sector has meant that regulators in Chile are under increasing pressure to enact laws that address FinTech activity. They are clear that the regulatory framework will allow “foreseeing risks, controlling damages, and having someone to assign responsibilities when failures arise,” according to local media.

The commissioner does not doubt that the demand for some financial technology solutions is on the rise, particularly now that the COVID-19 pandemic is affecting the world population, slowing a relevant part of the economy. Given this situation, she believes that the financial services that startups offer are decisive as promoters of financial inclusion and as a source of financing for small companies to bear the economic impact that they are receiving as a result of the slowdown in the economy.

Celedón added that the challenge that regulators face is to be able to propose a regulatory framework that is adequate and proportional to the scales. Besides, she says that this framework should naturally adapt to the developing technological environment, without quickly falling short.

To regulate the FinTech sector, the CMF member added that Chile must focus on applying the same laws with which it addresses the financial market. This process includes providing special licenses for startups focused on financial services, the record of customer information, requirements for accreditation of competence and suitability, and a risk management framework.

It is also appropriate to work within a general data protection framework that has regulation and supervision standards that facilitate the portability of data, according to Celedón. She also said that the owner of the data, in this case, the holder, can consent to the use of their private information, but must also have adequate protection mechanisms.

As financial services providers, FinTech companies have access to the private information of users that they sometimes share with third parties. For this reason, it is necessary to state that citizens authorize sharing their data.

The need to regulate the FinTech sector in Chile is increasingly evident. This need has even grown stronger since FinteChile submitted the draft open banking protocols to securities regulator CMF and the Ministry of Finance. This protocol seeks to stimulate the development of a national ecosystem, according to a note that BNamericas published last March.

At the time, Celedón stated that the FinTech bill could address issues such as open data. However, it was not possible to submit the proposal to Congress last year, since the social unrest that occurred in Chile led to its paralysis. The crisis that the coronavirus pandemic has caused in the world has also paralyzed the project this year.

As part of its growth, the FinTech industry expects integration with traditional banking in Chile. However, there is a story in which the bank has restricted the operations of several startups that provide financial services. Last January, Banco de Crédito e Inversiones (BCI) closed the accounts of the Bitcoin buying and selling platform ChileBit.

By Alexander Salazar

The company Transsion admitted that the equipment has a security flaw. The malicious software makes unauthorized purchases and subscriptions and consumes mobile data.

A model of a cell phone made in China has malicious software that steals money from its users. It is the low-cost Tecno W2 equipment from the manufacturer Transsion, which has a wide distribution in Africa and Southeast Asia.

The device costs USD 30 and is in the smartphone category as it uses Android 6.0, has an 8 MP camera, and a 1.3 GHz quad-core processor. The problem is that it comes from the factory with the Triada and xHelper Trojans, which make unauthorized purchases and subscriptions, consume mobile data, and generate invasive advertising.

The malicious actions would raise funds that would go into the hands of whoever controls the program, according to a study that the mobile security firm Secure-D and the BuzzFeed medium conducted. The company Transsion is not very well-known in America and Europe, but it is the fourth largest cell phone manufacturer in the world, after Apple, Samsung, and Huawei. Their main market is in developing countries, where they can offer low-cost cell phones.

Malware and Security Flaw

Even though Transsion admitted the security flaw of the cell phone, it held responsible for a “vendor” (supplier) in the supply chain process, which it did not identify.

“We have always attached great importance to the security of consumer data and the safety of products. Every software that we install on every device goes through a series of rigorous security checks, such as our security scanning platform, Google Play Protect, GMS BTS, and the VirusTotal test,” said the company.

The total number of infected cell phones traded was unclear, but Secure-D blocked around 844,000 transactions related to the pre-installed malware between March and December 2019. The people who have bought the cell phone are from countries that include South Africa, Ethiopia, Cameroon, Egypt, Ghana, Indonesia, and Myanmar.

What happened regarding the malware installed on the low-cost cell phones takes on another dimension, since it involves users facing adverse financial situations. “The poor are becoming even poorer. People are starving,” said one of those affected, identified as Mxolosi.

Some analysts consider that the malware has entered a dormant stage. However, they emphasized that it is not certain that the software has disappeared as there are still devices that have not been activated.

No one knows either whether the malware is capable of stealing cryptocurrencies like Bitcoin through the replacement of addresses copied to the clipboard. These types of malicious actions, known as clipboard hijackers, represent one of the most common malware programs used to steal Bitcoin and cryptocurrencies.

Last year, the first malware of its kind was detected in the Google Play Store for Android devices. This class of malicious programs, also known as “clipper”, intercepts addresses that then changes to other addresses of the attacker.

Users who want a new cell phone should ensure that it has no flaws that put their data at risk. They should also learn about new developments that help them safeguard their cryptocurrencies more effectively.

By Alexander Salazar

FedNow will be an innovative leap that would allow users to transfer funds in seconds. The US Federal Reserve plans to compete with other established payment systems.

The US Federal Reserve (FED) intends to launch the first stage of its new FedNow payment system in 2023 or 2024. The organization seeks to promote its digital transformation through this project.

If the Fed launches it within 3 or 4 years, FedNow would then have taken a decade to crystallize. The agency launched its initiative Strategies to Improve the US Payment System in 2013.

In early August, FED Governor Lael Brainard revealed details of the plan. She said that they are working on the development of an instant payment platform, with the widely accessible 24x7x365 format. With this, it seeks to modernize the US payment system and bring the benefits of instant payments to communities throughout the country.

The FED considers that FedNow Service would represent an expansive advance compared to the current system. It closes for a few hours every day, as well as on weekends and holidays, thus offering restricted hours of operation. With the help of technology, the system will allow people and companies to transfer funds in a matter of seconds and at any time, as more modern platforms such as Bitcoin currently do.

Through its website, FED states that thanks to more than 10,000 affiliated financial institutions throughout the country, it can develop a real-time payment system that virtually all US banks can access.

This means that FedNow will be a real-time gross settlement system (RGTS). It is a fund transfer system that allows instant transfer of money or securities. This is the continuous payment settlement procedure by individual order without compensating for debits and credits on the books of a central bank. Once completed, real-time gross settlement payments are final and irrevocable.

Additionally, FedNow will be a retail system. The limit in US dollars to make payments will be USD 25,000. The FED promises to examine that limit as the system unfolds and matures, as official documents state.

FED Haste to Transform Its Payment System

During the Federal Reserve Board of Governors, Brainard spoke of the need for the nation to have a real-time payment system. She believes that the current system, with checks, compensation payments, and high transaction costs, has not been able to respond more efficiently to the economic emergency that the COVID-19 pandemic has caused in the country.

Since the World Health Organization declared the coronavirus a pandemic, the FED has allocated billions of US dollars in stimulus funds and relief to US citizens in need of financial assistance. The process may have been more efficient if they had FedNow.

Brainard stressed that the FED would stimulate healthy competition in the real-time payments space and promote efficiencies related to pricing, quality of service, and innovation through the use of FedNow Service.

Similarities between FedNow and Bitcoin

There are three characteristics in which FedNow is similar to Bitcoin. The Federal Reserve’s payment system will be available without time limits, 24 hours a day, seven days a week, every day of the year, and without holidays. It will be a real-time settlement system; the payments will occur irreversibly.

The network is permanently available to pay with Bitcoin. It is possible to make or receive payments on the network regardless of the day or time. As there are no intermediaries to conduct the transactions, there are no holidays, strikes, or bank hours. Likewise, payments in Bitcoin undergo a real-time and irreversible process.

By Willmen Blanco

One of the factors that could be influencing inflation is the issuance of trillions of US dollars. As a store of value, Bitcoin exhibits some advantages over gold.

The price of Bitcoin could reach USD 500 thousand in the next decade due to the US economic crisis. That’s the opinion of well-known cryptocurrency market entrepreneurs Tyler and Cameron Winklevoss.

On August 27^th, the entrepreneurs stated in an article on the Winklevoss Capital blog that gold, the US dollar, and oil currently have “fundamental problems”, although they have been historically strong. They argue that Bitcoin is the only long-term protection against inflation.

The authors say that, contrary to the measures that the US government has implemented, it is wise to combine a savings policy with moderate public spending and very controlled money issuance. In times of economic expansion, that would be the best decision.

The recession of late 2007 ended in July 2009, according to data from the National Office for Economic Research. Since then, the Treasury has managed deficit budgets, which doubled the debt to USD 22 trillion in early 2020.

A graph shows the increase in the circulating money supply, expressed in billions of US dollars. As the chart indicates, it started at around USD 16 trillion in 2020. On August 3^rd, it had exceeded USD 18 billion, which represents a 12% increase.

When examining the balance sheet of the Federal Reserve, it is possible to see that USD 344,000 million in securities associated with mortgage debt were added along with USD 820,000 million of long-term securities this year.

According to the document, the relationship between debt and gross domestic product (GDP) grew from 83% to 106% from 2009 to 2019, as a result of the crisis that COVID-19 has caused. “This relationship will reach 135% next September, and will have grown more this year than in the last decade.”

Advantages of Bitcoin

“Bitcoin is not just a scarce commodity, but the only good known to have a deterministic and fixed supply,” notes the article. Bitcoin is not subject to “demand shocks”, as has happened with oil or can happen with gold. The main cryptocurrency exhibits other important advantages, such as ease of portability and robust security. “It is better as gold than gold [itself],” according to the document.

Comparing gold and Bitcoin in detail, the document highlights portability, divisibility, storage media, and scarcity, among others. Bitcoin is divisible to a hundred millionth, while the minimum measuring unit of commercial gold is one troy ounce.

The protection of Bitcoin occurs through software by storing the private keys in a wallet. On the contrary, gold requires expensive safes that are not very easy to transport.

According to the Winklevoss brothers, Bitcoin has moved fast into the domain of gold since its introduction. The entrepreneurs predict that, if its trajectory continues as before, a bullish scenario reflects that Bitcoin is undervalued by a factor of 45.

This estimate places the price of Bitcoin at about USD half a million. The authors suggest that if Bitcoin replaced 10% of the USD 11.7 trillion in fiat currency that central banks hold in reserves, the top cryptocurrency would trade close to USD 600 thousand.

By Alexander Salazar