Kenyans will now be able to buy Bitcoins using cash thanks to a new Bitcoin ATM machine in the East Afrikan country. Installed in Nairobi, the Bitcoin ATM machine is the first in Kenya, and possibly East Afrika, and it will also allow people to buy Litecoin using cash.
The ATM was developed by Kenya's BitClub and it will allow purchasing of Bitcoin and Litecoin for as little as $5, which can be paid for in US dollars or Kenyan shillings.
Bitcoin ATM in Nairobi, Kenya.
"The transaction is simple, taking less than two minutes; You get as many bitcoins as the value of your cash . Bitcoins function just like the loyalty points we earn from shopping at supermarkets or the reward points we get from talk time. You can also use them to buy goods or pay for services," said Wangechi Kariuki,
The Kenyan FinTech startup, BitClub, has also revealed that it has engaged in discussions with Kenya's largest telecommunications company, Safaricom, to integrate M-Pesa as a payment option on the Bitcoin ATM. This will, if it happens, allow customers to purchase Bitcoin using M-Pesa at the ATM.
How it works:
- Deposit cash into the Bitcoin ATM (the minimum amount is $5 or KSh 500).
- The ATM will prompt you to scan your Bitcoin wallet's QR code in order to receive the Bitcoin you've just purchased.
- Another prompt will appear requesting your mobile number in order for a purchase confirmation code to be sent.
- Once you enter the confirmation code on the ATM, Bitcoin purchased will reflect in your Bitcoin wallet.
The ATM comes after South Africa, which was among the first to have a Bitcoin ATM on the continent, re-introduced a new and updated cryptocurrencies ATM, by Verabit, earlier in 2018.
The only potential downside with BitClub's ATM in Nairobi seems to be that their Bitcoin exchange rate seems to be higher than that of several exchanges accessible to Kenyans.