Honduras opens first cryptocurrency ATM

Honduras' first cryptocurrency ATM dubbed "la bitcoinera" opened this week allowing users to acquire Bitcoin and Ethereum using the local lempira currency.

The machine was installed by Honduran firm TGU Consulting Group in an office tower in the capital of Tegucigalpa.

Bitcoin backers are spurring demand for virtual assets after neighboring El Salvador became the first country to make Bitcoin legal tender.

TGU CEO Juan Mayen, 28, initiated the effort to bring the ATM to Honduras to educate citizens about virtual assets through the first-hand experience.

On Friday, one Ethereum was trading at $3,237 and Bitcoin at $48,140.

Mayen said he would install more units if the service turned out to be popular.

To make a purchase, users have to scan official identification and input personal data such as a phone number.

The use of cryptocurrencies will be a cheaper option to send remittances, Mayen pointed out.

Last year, Hondurans living overseas, mainly in the US, sent home $5.7 billion, accounting for about 20 percent of the country's gross domestic product.

Additionally, many Honduran software developers are already paid in cryptocurrencies.