The device, already used in Australia and Canada, allows conversion between shekels and 'Bitcoins' stored in digital wallet.

An ATM machine allowing conversion between hard cash and Bitcoins, a new digital currency, is set to arrive in Israel in March. The machine will be installed in Tel Aviv's "Bitcoin Embassy."

The machine will be operated by Lamassu, Inc., and will support conversion between the virtual currency and more than 200 regular currencies in 25 languages. Once acquired, Bitcoins are stored in a digital wallet.

In recent months, the device was installed in Canada, where customers are able to conduct transactions of up to 3,000 Canadian dollars ($2,700) per day.

When conducting transactions, customers place their hands on a biometric sensor, both to confirm their identity and ensure they don't conduct transactions that put them over the daily allotment.

Since being introduced in Canada the currency has apparently gained great popularity; Bitcoiniacs reports that the Bitcoin exchange rate quickly jumped hundreds of percentage points.

A promotional explanatory video on the machine can be seen here: