Wherever you look, crypto currencies are in the news. Love them or loathe them, you can't ignore them.

In the past two weeks alone the South Korean government has barred its officials from holding and trading crypto currency and a former Indian government official has stated that such currencies should not be allowed as it’s impossible to regulate them properly. He claimed that unlike shares, which have an underlying value, 'they are created out of a vacuum or thin air'. At the same time Cardtronics has claimed that the growth in public interest could affect the general population's need or demand for cash.

Bitcoin was first launched in 2009 as a digital asset designed to act as a medium of exchange. In May 2010 two pizzas were bought using 10,000 bitcoin. The price has fluctuated greatly, but at the time of writing one bitcoin is worth £6088.  According to a 27 November Forbes article bitcoin saw a 55 percent increase in trading volume in 2017 with 30,000 new wallets created daily.

How easy is it to use bitcoin and what role do ATMs and cash play in this?

In recent years Bitcoin has become easier to use and more accessible. The evolution of Bitcoin ATMs that enable users to buy and sell bitcoins for cash is an important element of this development. The first Bitcoin ATM was introduced at a Vancouver coffee shop in 2013 and there are currently 115 of these ATMs in the UK, 83 of which are in London.

Though the term ATM is used, these are specialist machines and there is no connection to a bank account. Rather users are 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:

• Select Cash Withdrawal
• Enter amount
• On bitcoin wallet press the scan button
• Scan code from phone to bitcoin ATM
• Swipe phone screen to send bitcoin
• Receive printed receipt with redemption code from ATM
• After a short delay you will be able to enter the redemption code
• Enter redeem code via PIN pad
• Cash will be dispensed and a receipt printed

So how is this similar to a traditional ATM and how are the required technologies similar? Obviously the process is more complex than a straightforward ATM cash transaction but bitcoin purchases and sales via the machines do involve inward and outward cash payments. It is about the exchange of value to or from physical currency. The machines therefore require the technology necessary to ensure only genuine cash is accepted and dispensed and that the count is accurate. This where Glory comes in with our wide range cash dispense, acceptor and recycling modules.

That's not all. Recent reports have highlighted the potential for money laundering at bitcoin ATMs which is where Glory's serial number recognition technology comes into its own, enabling full traceability of every note passing through the machine.