Wed, Feb 19, 2014 - Page 15 News List

First US bitcoin ATMs to open in Seattle, Austin

ROBOCOIN:The kiosks are the first in the US, after one was launched in Vancouver last year. Last week, one of its best-known exchanges suspended its withdrawals

Reuters

Robocoin yesterday said that later this month it will install the first automated teller machines in the US that let users buy and sell bitcoin, the latest step into the mainstream for the digital currency.

The kiosks, to be installed in Seattle, and Austin, Texas, are similar to ATMs, but have scanners to read government-issued identification, such as a driver’s license or a passport, to confirm users’ identities.

The ATMs will allow people to swap bitcoin for cash, or deposit cash to buy more bitcoin by transferring funds to or from a virtual wallet on their smartphones.

Bitcoin was launched in 2008 and is traded within a global network of computers. It is not backed by a single company or government and has no assets behind it, but its release is tightly controlled, mimicking a central banking system’s control over the minting of money.

Robocoin, based in Las Vegas, installed its first bitcoin ATM in Vancouver in fall last year and will also start operating one in Calgary, Alberta, later this month. Robocoin also is planning to install ATMs in Asia and Europe.

A bitcoin is currently worth about US$636, but its value has fluctuated widely as the currency’s visibility has increased. In September last year, a bitcoin was worth about US$150. By late December last year, the value was near the US$1,000 mark.

Users can buy products and services online on sites including Overstock.com or in a handful of stores.

The currency’s reputation took a hit last week when two of its best-known exchanges suspended withdrawals. One of them, Slovenia-based Bitstamp, on Friday said it planned to allow redemptions to resume.

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