Bitcoin

AirTM Currency Conversion Success Hinges on Bitcoin Integration

Jp Buntinx · @http://twitter.com/jdebunt | Feb 15, 2016 | 04:17

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Growing a Bitcoin exchange or brokerage service is not an easy task, as there is a lot of competition in this niche market right now. Furthermore, there are plenty of consumers who are not looking at Bitcoin as a solution to their financial problems just yet. But neither of these factors is keeping AirTM from becoming a big success. This service built on top of Uphold’s cloud money platform make it easy for consumers to convert in and out of Bitcoin.

Also read: Jamie Dimon: Bitcoin Doomed While Blockchain Is for Real

AirTM Powers Cloud-based Currency Conversions

What makes the services provided by AirTM, so appealing is how they work with local cashiers in various regions, which help clients deposit and withdraw local currency. For example, it is possible to send Chinese Yuan to an AirTM cashier via bank transfer and have them convert it to US Dollars, which are then deposited into the client’s account.

Some people might be wondering how this principle is possible, as it requires cooperation by banks and other financial players. Bitcoin holds the answer to all of the questions, as the popular digital currency is used to convert funds to US Dollar through the Uphold platform. This funds is then used to fund AirTM cashier accounts and service clients looking to convert currency.

Most people who make use of such an AirTM cashier are not even exposed to the Bitcoin factor, as all they see, is local currency going in and foreign currency appearing in their account. While this method should be heralded and applauded by the Bitcoin community, AirTM deliberately remained quiet on using this technology when dealing with customers. After all, there is a fair amount of bias in regards to Bitcoin services, even if they use the digital currency to convert between fiat currencies.

Bitcoin can serve as a great tool to provide financial services to the unbanked, but AirTM is using the digital currency for a different purpose. By embracing Bitcoin, the company can offer a digitized US Dollar to its customers, which is subject to a far larger addressable market than digital currency – for now, at least.

Using Bitcoin Without Advertising It

While some people might disagree with the business strategy employed by AirTM, the company is seeing tremendous success from using Bitcoin. Granted, they are not advertising the involvement of digital currency by any means, yet their entire business runs on top of Bitcoin.

This strategy seems to be work quite well, especially when considering how the concept of Bitcoin is too volatile for most everyday consumers and businesses. Right now, there is a growing demand for various currency exchange solutions, and Bitcoin provides companies such as AirTM with the functionality to offer these conversions on the fly.

The connection with Uphold is of great importance as well, considering how the latter has no ties with the financial infrastructure in most of the countries where AirTM operates. Exchanging local currency to US Dollar can be a major hassle in some of these regions, and Bitcoin – unknowingly – provides them a way out.

What are your thoughts on the service provided by AirTM? Is this a great way to showcase Bitcoin’s strengths/ Let us know in the comments below!

Source: Medium

Images courtesy of Shutterstock, AirTM