Kiosk Solutions Issue 13 - Page 26

banking "There’s a definite opportunity for manufacturers to meet the growing demand for cryptocurrency by installing more kiosks" Though the term ATM is used, these are specialist machines and there is no connection to a bank account, users are instead connected to a Bitcoin exchange. Bitcoin ATMs are expensive to operate and the fees charged reflect this. How do they work? Though manufacturer models vary, the majority of the machines are sell (cash withdrawal) only. The general principles when withdrawing cash at the ATM are as follows: 1. Select cash withdrawal 2. Enter amount 3. On Bitcoin wallet press the scan button 4. Scan code from phone to the Bitcoin ATM 5. Swipe phone screen to send Bitcoin 6. Receive printed receipt with redemption code from ATM 7. After a short delay you’ll be able to enter the redemption code 26 KIOSK solutions 8. Enter redeem code via PIN pad 9. Cash will be dispensed with a receipt Similarities to traditional ATMs The process is obviously more complex than a straightforward ATM cash transaction, but Bitcoin purchases and sales via the machines do involve inward and outward cash payments. It’s about the exchange of value to or from physical currency. The machines, therefore, requires the necessary technology to ensure only genuine cash is accepted and dispensed, and that the count is accurate. The ability to consistently detect doubles, even with severely degraded notes, can’t be understated and is where significant recent advances in technology have taken place. Recent reports have highlighted the potential for money laundering and fraud at Bitcoin ATMs. Here a different approach needs to be taken; one where full traceability of every note passing through the machine is enabled. Optical character recognition can export the serial number of each banknote to a control computer through a direct communication application. Digital images of the banknotes can also be captured for enhanced security and risk reduction. This technology gives customers the confidence to know that only genuine notes have been dispensed, and provides the evidence to challenge the operator if they’re at all suspicious of counterfeit notes being issued. Serial number recognition is being mandated by more and more central banks, with the Chinese among the first to adopt it. Understandably, the rise in new payment technologies and the advent of cryptocurrencies could ultimately reduce the general population’s need or demand for cash and negatively impact future transaction volumes for traditional ATM operators. On the other hand, there’s a definite opportunity for manufacturers to meet the growing demand for cryptocurrency by installing more self-service kiosks in the market. n