[2019-01-08] French Tobacco Shops Start Selling Bitcoin

[Lyana]

Reuters has learned that the world’s largest cryptocurrency can now be purchased at six tobacco shops throughout Paris. However, in a  report French magazine Capital has claimed that there are as many as 24 shops currently participating in the experiment backed by Keplerk — a French cryptocurrency wallet provider.

According to Capital, customers can purchase Bitcoin for the sums of 50, 100 or 250 euros. The tobacco shop then provides a ticket with an alphanumeric code and a QR code, which can then be used to obtain the purchased bitcoins via Keplerk’s website. The magazine adds that Keplerk collects a 7 percent fee on each payment, 1.25 of which then goes to the tobacco shop. By February, it is planned to expand the project to 6500 tobacco shops.

As Cointelegraph reported in November 2018, France’s tobacco federation has obtained permission to trade Bitcoin in its shops from the French Prudential Supervision and Resolution Authority (ACPR), an independent agency that operates under the auspices of the French central bank.

However, on the same day that the news broke, the country’s central bank denied the reports, saying that it had not greenlighted any deals related to cryptocurrencies and In addition to that, AMF stated that PAYSAFEBIT SASU — the legal entity behind Keplerk — was not licensed by French authorities. But the French government has not imposed a de facto ban on selling Bitcoin at tobacco shops.

https://cointelegraph.com

But where is the connection between tobacco shops and cryptocurrency sales? 

[btyco]

These tobacco stores might not be selling just cigarettes but the paper used to roll them as well. These are frequently purchased by drug users who might purchase their drugs with bitcoin. That is the connection

[kenzawak]

But where is the connection between tobacco shops and cryptocurrency sales? 

Tobacco shops don't just sell cigarettes lol.
They sell lottery tickets, newspapers, chewing-gums, stamps, postcards...

[yesyes18]

Well, anyways i think that's why they're shops. They sell many things there and so it's cool they're adding the super innovation, Bitcoin to it. We hope many other stores start accepting Bitcoins like they'd have done back in 2017

[Lyana]

Well, anyways i think that's why they're shops. They sell many things there and so it's cool they're adding the super innovation, Bitcoin to it. We hope many other stores start accepting Bitcoins like they'd have done back in 2017

I haven't considered this innovation from that perspective. Yes, it's probably good for easier and wider use in everyday life.

[BitHodler]

Well, anyways i think that's why they're shops. They sell many things there and so it's cool they're adding the super innovation, Bitcoin to it. We hope many other stores start accepting Bitcoins like they'd have done back in 2017

It's not so much related to the stores, but the ATMs they agreed to run on behalf of the distributor. The stores get a cut and that's really it. I wish they really accepted Bitcoin as payment option, but that's not the case.

It may still happen eventually, but there needs to be an incentive to do so. Buying Bitcoin through these ATMs needs to be cheaper in order to have people spend it later on, because the fees are killing it right now.

At least, it makes Bitcoin more accessible, and that's important too. The more fiat entry points there are, the more money we can expect to enter during the next bull wave, because that's what average joes wait for.

[gentlemand]

But where is the connection between tobacco shops and cryptocurrency sales?  

Being a communist state, France has kept many markets completely sewn up.

You can't buy any type of drug or medication anywhere other than an official pharmacy, even the crappiest aspirin.

Similarly you can't buy tobacco anywhere other than a tabac. No supermarkets, no filling stations, no convenience stores, nothing. Only there.

That makes them very ubiquitous. Any settlement of reasonable size will have one which is why it's a big deal. However there's been similar attempts in other countries which got nowhere like Zipzap.

[LeGaulois]

Some tobacco shops were already selling bitcoin but not directly. You paid for your voucher and add your voucher code like you do to top up a prepaid phone, or to buy an Amazon code.

The fact that you can't buy drugs and tobacco anywhere, it's for the public health, we"re ok with it, it doesn't bother us

[Bossian]

Cannot even imagine the huge margin these shops will take to make a profit on each transaction.

I mean, right now when I am typing this, Bitcoin is worth 3090€ and I can perfectly imagine these shops selling Bitcoin in a 2600-2700€ range.

[milewilda]

It's not so much related to the stores, but the ATMs they agreed to run on behalf of the distributor. The stores get a cut and that's really it. I wish they really accepted Bitcoin as payment option, but that's not the case.

It may still happen eventually, but there needs to be an incentive to do so. Buying Bitcoin through these ATMs needs to be cheaper in order to have people spend it later on, because the fees are killing it right now.

At least, it makes Bitcoin more accessible, and that's important too. The more fiat entry points there are, the more money we can expect to enter during the next bull wave, because that's what average joes wait for.

Its part of the business and they do make this set-up and as mentioned above:

Keplerk collects a 7 percent fee on each payment, 1.25 of which then goes to the tobacco shop.

[gentlemand]

Keplerk collects a 7 percent fee on each payment, 1.25 of which then goes to the tobacco shop.

At best they'll do 1-2 sales until their customers get more savvy and abandon them for places that have realistic fees. Same goes for ATMs.

I'd forgive somewhere that was perhaps 1-2% above what I would pay elsewhere for the odd spontaneous buy. When it's that high there's absolutely no way I'd bother. They're fucking themselves ultimately.

[Lyana]

Cannot even imagine the huge margin these shops will take to make a profit on each transaction.

I mean, right now when I am typing this, Bitcoin is worth 3090€ and I can perfectly imagine these shops selling Bitcoin in a 2600-2700€ range.

They can make money if someone buys from them. But I have doubts about that because people can't be that stupid!   

I'd forgive somewhere that was perhaps 1-2% above what I would pay elsewhere for the odd spontaneous buy. When it's that high there's absolutely no way I'd bother. They're fucking themselves ultimately.

You've spoken harshly, but I'll totally agree with you.  It is not clear who this project is designed for, given that it is much cheaper to buy Bitcoin on the stock exchange.

[BitHodler]

Keplerk collects a 7 percent fee on each payment, 1.25 of which then goes to the tobacco shop.

It's pretty high for sure, but still, people will use it just for the sake of not having to deal with annoying exchanges asking 1001 different questions before you can withdraw your funds.

I assume that with enough growing volumes, and more importantly, more competitors, the fees will come down significantly. If you are the only fiat entry point locally, that's a pretty solid advantage right there.

Another thing is that with a bull run increasing the demand significantly, people won't be too picky because they want to buy the coins they expect will quadruple in value, so that 7% is peanuts.

[Bossian]

Cannot even imagine the huge margin these shops will take to make a profit on each transaction.

I mean, right now when I am typing this, Bitcoin is worth 3090€ and I can perfectly imagine these shops selling Bitcoin in a 2600-2700€ range.

They can make money if someone buys from them. But I have doubts about that because people can't be that stupid!  

Believe me it is always possible to bump into ignorant people, just like in fishing, you just need to wait and wait... until someone finally bites.

[veleten]

crazy people will be buying bitcoin with 7% tax
on top of  the ridiculously overpriced base rate that Keplerk would offer
but then the CB intervenes and says it is not even legal and that Keplerk's payment solution hasn't been licensed
it does look too good to be true, in a country that has not legalized crypto to be selling it through one of the largest chain of shops
not oficially banning sales of bitcoin at tobacco shops is not the same as allowing it

[Bossian]

Cannot even imagine the huge margin these shops will take to make a profit on each transaction.

I mean, right now when I am typing this, Bitcoin is worth 3090€ and I can perfectly imagine these shops selling Bitcoin in a 2600-2700€ range.

They can make money if someone buys from them. But I have doubts about that because people can't be that stupid!   

I'd forgive somewhere that was perhaps 1-2% above what I would pay elsewhere for the odd spontaneous buy. When it's that high there's absolutely no way I'd bother. They're fucking themselves ultimately.

You've spoken harshly, but I'll totally agree with you.  It is not clear who this project is designed for, given that it is much cheaper to buy Bitcoin on the stock exchange.

No offense, but it's just like fishing, you just have to wait and one fish will eventually bite.
Some 60 years old can be naive when it comes to "make" money after their retirement, read bad stories about it.

[vit05]

7%. That is expensive. But it could be an incentive to others shops trying. It appears that this tobacco shops is located everywhere in France. So it will help to make Bitcoin more popular.

I think there is a great opportunity for some kind of ATM that works with P2P. This way people would be able to lower the price of those operation. It would works as an exchange, you will go to an ATM and see the different prices people are offering