First Bitcoin retail store opens in SAR Updated: 2014-11-26 06:29 By Luo Weiteng in Hong Kong(HK Edition)

Bitcoinnect's director of operations Tad Ip (left) and BixFX chariman Kevin Fong demonstrate how a Bitcoin ATM machine works. Provided to China Daily

BitFX Ltd - the one-stop retail Bitcoin exchange founded earlier this year - launched its first Bitcoin retail store in Hong Kong on Tuesday and said it has forged strategic partnerships with OKCoin, the leading China Bitcoin exchange platform, and Bitcoinnect, a supplier of premium Bitcoin kiosks.

It has been only a few years since Bitcoin - a form of digital e-money stored in a virtual wallet introduced in 2009 - emerged as the world's first global digital currency.

The essential breakthrough of Bitcoin is to allow two people to exchange money directly with each other, without the need for an intermediary, and to do it wholly digitally.

Each transaction is recorded in a public ledger, enhancing transparency and trustworthiness.

With the BitFX flagship store launched in Hong Kong and premium Bitcoin kiosks being placed in different accessible locations, consumers can buy Bitcoin for cash instantly.

"Starting today, customers in Hong Kong can visit the unique BitFX retail store to enjoy a simple, secure and solid Bitcoin experience. We take the technology out of equation and make Bitcoin more accessible and convenient for everyone," said Gina Leslie, vice-chairperson f BitFX.

"When we founded BitFX, we wanted to create a physical presence for Bitcoin and connect the digital and physical Bitcoin experience," she said.

The BitFX retail store is equipped with well-trained specialists to assist consumers to trade Bitcoins while the Bitcoin kiosks, functioning more like a vending machine, are a convenient platform for users to buy and sell the virtual currency.

After scanning a code across a sensor, users can insert a banknote into the slot. Once the transaction is complete, their smartphone would release a beep in a matter of seconds confirming a fraction of a Bitcoin has been electronically transferred to a "wallet" online.

One more BitFX innovation is the 3D Bitcoin wallet, a physical sealed wallet that allows customers to store their Bitcoins safely and transfer them at anytime with their mobile devices or computers. 3D Bitcoin has a unique polymer banknote linked to the 3D wallet so that customers can retrieve their lost 3D Bitcoin wallet.

In the past six months, Bitcoinnect has set up 10 premium Bitcoin kiosks on the Chinese mainland and in Hong Kong and Macao.

Apart from the kiosk at the BitFX retail store in Jordan, Bitcoinnect plans to add at least 20 more in Hong Kong by the end of 2014 or early next year. Among them, five Bitcoin premium kiosks have already been established and would be ready for use within a week. It is estimated that there are some 89,500 Bitcoin transactions a day currently, and 13.50 million Bitcoins are in circulation globally. (That converts to about $5.25 billion at a recent USD/BTC exchange rate of $389/BTC).

Nowadays, the Bitcoin ecosystem continues to expand despite a dip in confidence after the collapse of Mt Gox, a Japanese Bitcoin online exchange, early this year.

In September, PayPal announced it was partnering with Bitcoin processors BitPay, Coinbase and GoCoin to allow its merchants to accept the virtual currency for digital goods like online games and downloadable songs.

And in October, consumers in Taiwan are reportedly able to buy Bitcoins at 2,986 FamilyMart convenience stores.

Although the digital currency so far has been considered as "a highly speculative commodity which poses numerous risks" in Hong Kong, according to a Bitcoin warning issued by Secretary for Financial Services and the Treasury Chan Ka-keung this month, entrepreneurs in the city are scrambling to offer new services for Bitcoin investors and enthusiasts in the region.

The city has seen three companies install Bitcoin ATMs in March this year, with about 20 Hong Kong merchants using the virtual currency and the number of international vendors on the rise.

sophia@chinadailyhk.com

(HK Edition 11/26/2014 page9)