Although recent statements by the Governor of the Central Bank Hector Valdez Albizu stressed the fact that Internet currencies such as Bitcoin and others are not protected under current monetary legislation in the Dominican Republic, as many as 15 persons a day operate an ATM located in a commercial establishment on Maximo Gomez Avenue at the corner of Peña Battle, in the National District. There they use the ATM to play video games identical to those available in local casinos but in this case payment is made in Bitcoin. Instead of payment being made in dollars or pesos or from a credit card, payment is made with electronic money such as Bitcoin and any winnings are also paid in Bitcoin or in pesos or dollars.
In Bitcoin there are many platforms, according to the Listin Diario, one which will double your pay such as the pyramid that doubles the investment in 90 days and in order for this you need to have an electronic portfolio with a Facebook account.
This type of virtual money is not regulated, as strongly voiced by Valdez Albizu, by any of the financial laws of this country, and all operations are irreversible, so there is no way for clients to file claims. One client, who refused to give his name, said that Bitcoin Cash attracts persons with the promise that their money will be multiplied and at the end of 60 days their investment could grow by 300%.
“They are in the Internet, on Facebook, on WhatApp, they make you believe that everything is legal and that you are a leader.”
Since it is not an official currency, authorities can’t respond to any complete or significant change in the value of the currency, and in some other countries it has been indicated that Bitcoin is used in illegal operations such as fraud or money laundering.
Arielle Garcia, the owner of Tattooarium, located on the second floor of Plaza Enriquillo, where the ATM is located, says that http://bitcoinrd.online is the number one page for buying and selling Bitcoins in the Dominican Republic where this activity has been going on for more than a year.
Listin Diario reports there is also an ATM at a hotel in Boca Chica that provides an additional service to hotel guests, especially people from Spain who request this service. According to one person who did not want to be identified for the Listin Diario story, the service eliminates third parties, which is to say banks, from such financial transactions.
The Central Bank responded to the Listín Diario story indicating that banks and regulated financial institutions that carry out operations with Bitcoins or other virtual non-regulated currencies face fines. The Central Bank has alerted that the virtual currencies have no legal backing in the Dominican Republic putting those who transact in these at their own risk.
Bitcoin is described as a digital currency that operates on an open-source peer-to-peer system. Its value is determined by people engaging in Bitcoin transactions and is a rival to government-regulated monetary systems. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
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Listin Diario
Bitcoin
6 July 2017
