Software company expands to provide crypto ATMs and debit cards worldwide
Cryptocurrency ATMs offer people the convenience of either physically cashing out their crypto, or in some cases, buying some right off the street. Their spread represents the growing interest in and acceptance of cryptocurrencies. However, despite their growth, most of these ATMs operate in a way that goes against some of the core principles of the underlying blockchain technology.
Existing crypto ATMs are not only rather centralized physically, with nearly 75% located in North America and roughly the other quarter in Europe, but have also been monopolized and are anti-privacy by design. In keeping with core blockchain principles of privacy and decentralization, Velorex offers “anonymized, decentralized cryptocurrency management capabilities that favor local economies and the end-user,” according to its whitepaper.
Velorex is a European-based technology company that provides both hardware and software solutions for decentralized finance (DeFi). Through more familiar tools, such as ATMs and debit cards, it hopes to spread the growth and awareness of cryptocurrencies. It emphasized that this is especially the case in developing or emerging markets, where many who have typically gone unbanked thus far can finally have the chance to take part in their local economy.
Velorex Bankless ATMs utilize open-source software that directly interacts with decentralized exchanges (DEXs) around the globe, such as PancakeSwap (CAKE). This approach also differs from the more traditional “master wallet” model used by financial institutions.
Not only is this distributed approach more in line with blockchain principles, but it also makes it easier for Bankless ATM owners to comply with regional regulations and guidelines. It also means that owners must provide liquidity themselves, as well as relevant access controls. Prospective owners can choose from a selection of models, each offering a variety of features, including local language selection, with a base model, starting at $5,500, and earn 1-3% per transaction.
owever, the real benefit of using these machines comes in the form of “reflections.” Every transaction on a Bankless ATM produces dividends in the form of Velorex’s token VEX. VEX Holders receive reflections, even if the transactions are for different tokens, increasing the incentive for holding the token as the network expands.
Cards and wallets
Another way Velorex is conditioning communities into crypto is through its debit cards. While allowing users to spend their crypto holdings on products and services at physical or virtual locations, Velorex debit cards use the owners’ VEX holdings to pay for purchases.
However, once users have become more familiar with the system, they are encouraged to migrate to Velorex’s Smart Wallet. These work in tandem with Bankless ATMs, with the intention of being a single point for financial management. Similarly to multiple bank accounts, Smart Wallet also allows for multiple wallets. In addition to storing assets, users can transfer tokens instantly with no fees but gas transaction costs. Additionally, Velorex provides 24/7 support for any technical issues users may encounter.