First ever Bitcoin transaction at The Old Fitzroy. Credit: @BitcoinSyd

The Old Fitzroy in Sydney’s eastern suburb of Woolloomooloo will begin accepting Bitcoins as of next Sunday.

Customers will use their smartphones to scan a QR code that directs them to a Bitcoin exchange to pay for beer and other items at the bar.

The system was developed by Bitcoin Sydney’s Jason Williams, who announced its 2pm, September 29 Old Fitzroy launch on Reddit today.

“We had a trial last Wednesday which was pretty successful,” he wrote.

ZDNet reports that beers should cost about 0.05 Bitcoins, which converts to about $7.

Fitzroy proprietor told media that he was interested in Bitcoin because it was “progressive” and was a step away from the big banks.

Other Bitcoin Sydney members will attend the launch to answer any questions about Bitcoins and assist patrons with the point-of-sale system.

The Old Fitzroy may be Australia’s first pub to accept Bitcoin, but there are other businesses that have already warmed to the virtual currency.

Earlier this year, real estate agent Paul Osborne allowed entrepreneur Cosmo McIntyre to pay his fees in the sale of a Melbourne terrace in Bitcoins.

The ATO warned in June that it would be taxing Bitcoin transactions and investments. Bitcoin has been taxable since inception, as it is considered a currency under Australia’s Income Tax Assessment Act 1936.

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