TASMANIA’s first automatic teller machine for the internet currency Bitcoin began operations in Launceston today.

Bitcoin director of Launceston Launch Adam Poulton said the $5000 machine would enable Bitcoin users to transfer digital cash around the world free of charge using a smartphone.

He said Bitcoin was similar to Western Union but faster and cheaper.

Mr Poulton said there were 12 businesses in Launceston, including restaurants, that exchanged Bitcoin for goods and services.

He said Bitcoin had grown 100 per cent every two or three months.

“Bitcoin is made for the internet so it has got a lot of really good uses on the internet, it's a little bit more marginal on day-to-day trade,’’ he said.

He predicted that Bitcoin would take off in the same way Facebook had.

“In five years’ time there will be uses we cannot even imagine today,’’ he said.

Volume II bookshop co-owner Ash Campbell said he hoped the machine would bring a few extra customers in.

He said the store would update its computer software to allow purchases of books to be made using Bitcoin.

With one Bitcoin presently worth about AUD$380, a $45 book would cost about 0.1 Bitcoin.