Diamond Circle develops first cashless Bitcoin ATM.

March 24, 2014 20:17 UTC

Stephen Rowlison, an experienced Australian financial technologist, has announced the development of the World’s first Bitcoin (cashless) ATM. This development, by the company Diamond Circle, allows users to but bitcoins using a bank or credit card and to sell bitcoins with the money from the sale being transferred straight to their, pre-registered, bank account. The machine does not require QR codes or cash, but works on something called, near-field communication via a small plastic key-tag and generates, for its users, a good old fashioned paper receipt. To all intents and purposes the small wallet tag functions as a secure cold-storage device for bitcoins.

Stephen Rowlison has over thirty years experience in Australia, the US and Asia and is the founder and chief technical officer at Diamond Circle. The new cashless Bitcoin ATMs were manufactured in Brisbane and Australia and delivered just this week. Rowlison stated: “What I’ve really done is brought together two existing technologies: contactless NFC and BTC. QR code payments have been outlawed in China and have no inbuilt card security, which is why using contactless technology makes so much sense.”

Diamond Circle now intends to move into the second phase, the development of a point-of-sale integration that will enable merchants to accept payments in bitcoins via technology they already have in place.

Diamond Circle has already received substantial levels of interest in its new technologies from many customers. These inquiries have come from areas as diverse as the UK, the US, China, Canada and the Middle East. They have already sold two ATMs within Australia and are currently shipping their first sale to the UK. The company has formed strategic relationships with banks to advance their technology but tellingly, he states the relationships have not been without some difficulties; he has met with some resistance and has encountered two direct rejections from the banks. “They just need to realise risks can be managed, it’s just a matter of getting that through to them. I don’t see it as a ‘Us versus Them’ situation, Bitcoin is just another currency, we can co-exist. We need to figure out how we can co-operate.”

Stephen Rowlison bringing his thirty plus years experience to this project must be seen as a tremendous step forward in the development and adoption of Bitcoin technologies. Diamond Circle has brought cutting edge technology into Bitcoin delivery. All wallet tags are secured by pin codes and the paper receipts will add to the security by functioning as a printed record of the transaction. The wallet tags can also be used with various smart phones to check balances and send secure transaction messages such as wallet address for payments.  Rowlison stated: It’s got the same smarts as banking technology except we mandated a personal identification number for all tags that are registered on-line”.

It will be interesting to watch and see how long it takes for cashless Bitcoin ATM’s to begin to appear outside of Australia. I am unsure of the delivery address of the machine bound for the UK; I remain confident, however, that it will surface very soon.

Last modified: October 6, 2014 10:28 UTC

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