Run down locations in Detroit, Michigan are being populated with new crypto ATM machines. Detroit has been down on its luck since the downturn in the auto industry, but the crippled town is far from finished. Bitcoin ATMs are a welcome addition to gas stations, liquor stores and locations that cash checks.A total of 14 business owners host the bitcoin-based machines, but none are willing to get into a conversation about them.
Why Cryptocurrency ATMs?
A think tank called the Foundation for Defense of Democracies, also known as the FDD speculates that there are two main reasons for the recent appearance of 29 crypto ATM machines in Detroit, Michigan. The first is that there is a serious lack of banks in this low-income sector of the city. It is a type of replacement for people who don’t have a banking system to rely on. The other thought is that the crypto ATM system is being used to launder money by criminals involved in illegal activities. Local law enforcement is convinced that both theories are true.
Introducing The “Blockchainers”
Bitcoin cryptocurrency is a new kind of currency system that represents an alternative to traditional banking and the use of dollars and cents. The new technology is beginning to catch on in the United States, but Detroit, Michigan, in particular, is a region where the practice is becoming common. The Detroit Blockchainers is just one of several meetup groups with hundreds of members who hold weekly meetings for trading cryptocurrency. There are enough people who own cryptocurrency to support the use of multiple crypto ATM dispensers. At meetings, bitcoin holders can exchange currency person to person.
Bitcoiners Increasing in Numbers
In addition to the 488 members of The Detroit Blockchcainers, a similar group known as The Michigan Bitcoiners meets with more than 988 members at last count. Cryptocurrency is becoming the new way of doing business for many entrepreneurs in the state of Michigan, and in its largest city of Detroit in particular.
Business Cashing in on The Cryptocurrency Wave
The “International Bitcoin” company, led by Ayman Rida, distributes crypto ATM machines. The executive explained that they have placed several of the ATMs within Metro Detroit as well as in other areas of the state.
The machines are being used regularly with transactions that average greater than $50, but less than $100. The bitcoin industry is thriving in the industrial city of Detroit, but could it make crime easier in the area? Because the system is new, there hasn’t been enough time to collect and analyze the data, so it’s uncertain exactly why bitcoin has become so popular in the area. The practice is catching on worldwide and cryptocurrency is now recognized as an international way to buy, sell and compensate. The blockchain system lends a different approach to trade than the traditional banking system.
Will The Blockchain System Lead To More Crime?
An FDD researcher named Fanusie has acknowledged that it is possible for criminals to use the cryptocurrency system to stay under the radar of federal regulators, so long as the transactions are under $100 each. Larger amounts would easily be detected so he doubts that money laundering would be an option in the blockchain system. Some concern has been lodged by lawmakers about this scenario, but so far, there is no reason to believe that there will be any larger crime with cryptocurrency than there is with traditional currency use.