South Korean ATM manufacturer, Hyosung through a twitter post, has announced the official integration of Bitcoin into its international ATM models. A significant development in term of wider acceptance of Bitcoin as an additional payment option in the mainstream transaction. The domestic ATM network of Hyosung is already integrated with Bitcoin which enables users to buy and sell Bitcoin through its ATMs across the country.
The addition of Bitcoin as a payment option will help in to increase the liquidity and govern the currency in more regulated fashion. The illegal use of Bitcoin and other cryptocurrencies are often viewed as a threat to the financial structure of any economy. And, the same thought is shared by many countries including Russia which is going slow on any laws to regulate the currency.
Since the concept of Bitcoin ATM is in its nascent stage, there are several issues compared to the conventional ATMs. Among the several issues, the transaction fees and the compliance will surely be going to the deterrence among the small users because the ATMs are used for smaller transactions in general. And, also the integration with several exchanges may lead to support issues and less efficient ATMs.
Bitcoin authorities and other governing authorities are pressuring Bitcoin exchanges to go through the strict KYC procedure and Anti-money laundering policies for every account holders to comprehend the issues. And, the time is taken to verify the user and updating daily & monthly limit of accounts will deter the small retail users to jump into the system.
In the longer term, as the ATMs gets integrated with the bank’s network globally, it would only lead to increase the mainstream adoption.