The country has one of the fastest growing bitcoin markets, and its rapid growth has sparked fears that the country’s burgeoning bitcoin industry is poised to become a massive black market.
The bitcoin ATM boom, however, has been a boon for Indian entrepreneurs, who have been able to circumvent banks and banks have been reluctant to step in to help, fearing a backlash.
In recent months, several bitcoin ATM projects have been announced, including the Ampex ATM project in Mumbai, which will allow people to use bitcoins to purchase items at the cash machines.
Ampex, the largest merchant bank in India, will launch the machine in May, with a target of 5 million transactions per month.
The company, which recently said it would offer bitcoin ATM services to merchants, has invested Rs 1,500 crore in the venture.
The ATM will have five bitcoin chips, which are worth around Rs 50 each, to enable merchants to process transactions.
A QR code will be scanned and the amount of bitcoins received will be recorded on the customer’s bank account.
The Ampex project was set up in 2017 and is slated to be operational by 2022.
The project was launched with a Rs 1.8 lakh seed round led by Indian venture capital firm SoftBank, while the company is also working on a bitcoin debit card and ATM device.
SoftBank and Ampex had signed a memorandum of understanding (MoU) to expand bitcoin ATM use in India.