Cryptocurrency Courts Latin America

Cryptocurrency Courts Latin America

Pundi X and MakerDAO have announced they will provide merchants in the Latin America (LatAm) region with free blockchain-based point of sale (POS) devices – known as XPOS – to enable cryptocurrency transactions. While customers will be able to pay in Bitcoin, Ethereum or a host of other currencies, the sale is settled by the XPOS in MakerDAO’s DAI stablecoin which is pegged to the USD.

The Crypto Merchant Program is designed to increase cryptocurrency adoption while using DAI to significantly reduce any exchange volatility risk for the retailer. As an added incentive, merchants will receive 2% commission on cryptocurrency transactions.

More Control Over Finances

The benefit of using DAI as the settlement currency rather than any regional national fiat currency was highlighted when MakerDAO began their co-operation with Pundi X in August last year. Nadia Alvarez, MakerDAO’s LatAm Business Development representative, was quoted at the time as saying “DAI provides an easy way for people in Latin America to escape the devaluing effects of hyperinflation.”

Alvarez suggested that “By integrating DAI across its global payment network, Pundi X makes it very simple for people – even those unfamiliar with cryptocurrencies – to use DAI and have more control over their finances.”

To start the new campaign, 100 XPOS terminals will be made available for the Brazilian market and a further 650 will be spread throughout other countries in the region including Argentina, Venezuela, and Colombia.

Certain criteria will need to be met by retailers proposing to host a terminal. In Brazil for example, merchants are required to have an actual brick and mortar store rather just an online presence and to possess a valid identification number (CNPJ) issued by the Department of Federal Revenue of Brazil.

Pundi X came to market in a successful initial coin offering (ICO) for the sale of their NPXS tokens at the beginning of 2018 and have persistently pursued partnerships designed to expand operations in South America.