ATM accepting three major cryptocurrencies Bitcoin, Dogecoin and Litecoin opens in ACT

Updated

A new ATM has opened in Canberra that accepts and exchanges the three major cryptocurrencies: Bitcoin, Dogecoin and Litecoin.

The alternative online currencies are gaining traction nationally, with observers estimating there are close to 50,000 users in Australia.

The ATM is the first of its kind in Australia to trade all three digital currencies, but others have appeared in capital cities specifically for bitcoin users.

Alex Hume from the group behind setting up the new ATM, Bit2Bit, said more users and businesses were becoming interested in the online currencies.

"I suspect that bitcoins are going to take off, and with all these other cryptocurrencies coming on board I think it's going to become a huge part of retail, even in the next five to 10 years," he said.

Mr Hume said there were at least nine businesses in Canberra accepting bitcoin, including the local bus system ACTION.

That is up from only four companies a month ago.

"There's a lot of people interested in it, a lot of them are quite young," Mr Hume said.

Chris Guzowski from the Australian Digital Currency Commerce Association said there are close to 1,000 Australian businesses that now accept the alternative currencies.

"The usage has been very impressive, so it's clearly a technology that people are excited about," he said.

"Early adopters are with enthusiasm telling their friends about it and there's an upward trend of adoption."

The Australian Tax Office yesterday released guidance notes for bitcoin, and said it would be taxed as a tangible asset but not as a currency.

This has raised fears businesses trading in bitcoins would be hit with the GST twice, once for the bitcoins and a second time for the services they offered.

Generally it's as instantaneous as an email and as cheap as an email... It's quite similar to using a credit card, it's not quite as quick as cash in that there's a small process involved. Matthew Dunstone, cryptocurrency user

Despite this, Mr Guzowksi estimates there were about 50,000 people using bitcoin in Australia and that that number would grow.

He said many users were drawn to cryptocurrencies because they do not incur regular bank fees.

"You can seamlessly immediately send bitcoin like sending an email and you're not charged any processing fees, it's reconciled immediately," Mr Guzowksi said.

Canberra businesses embracing change

Chrissie Wittich runs a cafe in the centre of Canberra that has been accepting bitcoin for close to a year.

She said using the cryptocurrency has been cheap and easy for her business.

"I pay fees on the credit card transactions and the debit card, but I don't pay any fees on the bitcoin transactions," she said.

Ms Wittich said the system had drawn tech-savvy customers to her cafe and was user friendly for people on either side of the counter.

"It's similar to a credit card transaction. I have a tablet that's got the system on it, I just put in the Australian dollar amount and the system converts it to bitcoin [and] a QR code comes up, a customer puts their e-wallet up," she said.

Full potential 'yet to be realised'

Early adopters of cryptocurrencies like Matthew Dunstone believe it is an exciting and underestimated technology.

"Generally it's as instantaneous as an email and as cheap as an email," Mr Dunstone said.

"It's quite similar to using a credit card, it's not quite as quick as cash in that there's a small process involved."

He said one of the greatest advantages of cryptocurrencies is that there are no expensive exchange or transaction rates, as cypto-'money' doesn't need to pass through banks or change currencies if it is sent offshore.

"It's as low as no costs at all. Sometimes, some transactions can have a very, very small cost," he said.

Fellow bitcoin user Peter Clarke said alternative currencies are slowly coming into their own.

"It's a good alternative to carrying spare coin in your pocket," he said.

"The full potential of bitcoin is yet to be realised."

But Mr Clarke said recent variability in the exchange rate of the currency was worrying for users.

He pointed out that the current bitcoin price of about $500 is far below its peak in November last year of close to $1,000.

"The fees in terms of using bitcoin are quite low, but the downside with bitcoin at the moment is that the price is very volatile," he said.

"The price is yet to strike a point that's a fair balance."

Topics: currency, internet-technology, computers-and-technology, information-and-communication, internet-culture, canberra-2600, act

First posted