First Bitcoin ATM Opens in Vancouver

First Bitcoin ATM Opens in Vancouver

The first bitcoin ATM was launched recently. The ATM was placed close to an espresso bar in a popular coffee shop in Vancouver. The value of the digital currency increased to its highest level of $266 last April as its usage increased among consumers and businesses.

The Vancouver kiosk looks like a typical ATM, but it featured barcode and hand scanners. A number of people started to use the ATM to exchange their bitcoins for cash while others deposited cash to purchase the digital currency. Robocoin chief executive Jordan Kelly indicated that the process only takes two minutes to purchase the digital currency. Robocoin is the company that produces the ATMs.

Transfer fees for the digital currency are reduced since it does not go through clearing houses or banks. The identity of users is confirmed by the ATM by scanning their hands. After confirming the identity, funds are moved into a virtual wallet on the smartphone of the users.

Four additional kiosks will be added by Bitcoiniacs by December in Canada. The company operates the ATM in Canada. Robocion indicated that the less stringent oversight on the digital currency in Canada made it an ideal place to introduce the kiosk. The trade of the digital currency is not monitored by the Financial Transactions and Reports Analysis Centre of Canada.

The currency was introduced in 2008 and is being traded in an international network of computers. Although it is not supported by one government or company, the control of its release mimics the control of the minting of money by a central bank system.

Supported have indicated that the risk of fraud is reduced since the digital currency is purchased with near anonymity. However, critics have indicated that bitcoins may also be appealing to money launderers and drug dealers.

The co-founder of Bitcoiniacs, Mitchell Demeter, indicated that purchases will be facilitated with the creation of the necessary infrastructure. He added this situation will result to an increase of the number of people who will use bitcoins in making purchases.

Posted by James Fried on Thursday October 31 2013, 4:23 AM EST. Ref: Reuters. Link. All trademarks acknowledged. Filed under Featured News, World. Comments and Trackbacks closed. Follow responses: RSS 2.0