The Old Fitzroy Hotel will be Sydney's guinea pig for a trial rollout of digital currency.

At the end of the month, the historic pub will be the first in Sydney to adopt the revolutionary and controversial technology allowing patrons to pay for the drinks using their smart phones.

The Bitcoin technology will work just like EFTPOS but will utilise smart phones instead of credit cards.

Once Bitcoin is up and running at the Old Fitzroy, anyone with a smart phone and a Bitcoin wallet will be able to use their phone to scan a QR code, which will be generated at the till.

Proprietor of The Old Fitzroy, Garry Pasfield said despite The Old Fitzroy's rich history he was excited about embracing the new technology and had already adapted the Point of Sale device to start taking Bitcoin at the bar.

media_camera Proprietor Garry Pasfield at The Old Fitzroy Hotel which is the first pub in Australia to accept Bitcoins, digital currency you access with your phone. Pic at Pub in Woolloomoolloo.

"I've realised the world won't stop for anybody and progress won't stop for anybody so if I can jump on this great bandwagon at the beginning then why not," he said.

"It's all progress to me. I can still remember when we first got EFTPOS and people got used to it, then we got an ATM machine and people learnt to respond to it so I am sure people will learn to respond to Bitcoin when it's up and running."

Mr Pasfield said he wouldn't be surprised if more venues chose to adopt the service once it is up and running at The Old Fitzroy.

"I think it is something that could take off because it is as safe as any EFTPOS transaction and the fees are cheaper, the only disadvantage is the fluctuation in currency. Bitcoin is a like gold in terms of how it is bought and sold but apart from that I can see it taking off around Sydney."

The Old Fitzroy proprietor said the service would be easy for staff and patrons to utilise.

"It can be used from most smartphones and all it needs to do is scan a QR code which makes it a really quick and efficient way to make any transaction," he said.

"I don't need to modify anything at the bar, I just need to ensure we have WiFi operating around the space which we have already had for a long time. I am just working on improving the coverage."

The Old Fitzroy Hotel will hold a Bitcoin launch event on Sunday, September 29 from 3pm.

Originally published as Beers for Bitcoins