The Diamond Circle ATM works together with its bitcoin debit cards. They cannot be used with any other ATM. In March this year, CCN carried the story about Diamond Circle having developed the first cashless Bitcoin ATM. In explaining how the Bitcoin ATM would work, the company’s Chief Technology Officer, Steve Rowlison said that users would be able to buy and sell bitcoins using a bank or credit card. The money from the sale would then be transferred directly into their pre-registered bank account.
Also read: Diamond Circle develops first cashless ATM”
The Bitcoin ATM employs what is called near field communication or NFC. NFC is a set of communication standards that enables two devices to establish radio communication by bringing them into proximity with each other. To buy bitcoin, a user would have to use a VISA or MasterCard branded ATM to buy a Diamond Circle debit card. The debit card costs only $5 and can also function as an offline storage wallet.
All wallets are further secured using pin codes. They further come with paper receipts that function as a printed record of the transaction. In addition, the system can send SMS notification to smart phones, which can also be used to check balances and send secure transaction messages such as wallet addresses.
NFC is likely to become a standard for communication in the bitcoin industry especially as new rules come into effect in October 2015. The new rules require merchants to upgrade their hardware so as to be able to support EMV cards, and it is hoped that manufacturers will also include NFC. Various players including Apple are betting on the uptake of NFC as a secure standard for making payments.
Though Diamond Circle have not announced any immediate plans to link to the NFC functionality on Apple devices, the company’s Bitcoin debit cards feature Apple SDK compatibility.
The new cashless Bitcoin ATM is generating a buzz all around the world. Diamond Circle has received substantial levels of interest from places as diverse as the UK, the US, China, Canada and the Middle East. By March this year, the company had already sold two ATMs in Australia and had shipped one to the UK.
The company has also endeavored to reach out to banks, so as to create strategic relationships that will aid in the adoption of the ATMs. The process has had its challenges; however, the CTO is upbeat about it and feels that there is room for everyone in the new bitcoin landscape. It also helps that Stephen Rowlison has more than 30 years experience in finance and technology, and these credentials go a long way in smoothing out relationships with institutions such as the banks. The platform can also be used to comply with anti-money laundering and differing “know-your-customer” requirements around the world.
Images: Diamond Circle / CCN Library
Last modified (UTC): October 6, 2014 10:28