Coinsource adds Dai stablecoin to Bitcoin ATM, sets sites on remittances
Coinsource, a Texas-based Bitcoin ATM operator, is adding the Dai stablecoin to its machines this summer in preparation for a full remittance service, according to a report in Reuters.
A stablecoin is a virtual currency that has a stable value and is backed by another asset. MakerDao, a decentralized organization, issues Dai, which is backed by an underlying basket of crypto assets. Dai is pegged one-to-one to the US dollar, so that one Dai is worth roughly $1.
Stablecoins allow traders to manage the wild volatility of cryptocurrencies, such as bitcoin. When the prices go down, they can move funds into a stablecoin and wait till the market picks up again. The idea is similar to keeping funds in cash, as opposed to other investment vehicles.
As part of the move, Coinsource will update all of its more than 230 bitcoin ATM machines in 29 US states and the District of Columbia to allow customers to buy, sell, and store Dai stablecoins.
Eventually, the company plans to launch a remittance service allowing Bitcoin ATM and Dai users to send the virtual dollars from one user to another via digital wallet. Recipients will then be able to instantly redeem funds at any Coinsource machine or supported location.