Thank you both,
- Bitcoins <-> Fiat, and a vending machine that spits out physical tokens
Correct
- A physical token that can be converted back into BTC
...
Are the proposed tokens just backed by Bitcoin (no value stored on the token itself)? or do they actually contain a Bitcoin wallet (private/public key for the Bitcoin network, like a Casascius coin)?
They contain a Bitcoin wallet, like a Casascius coin. This is the only reason two machines are necessary really. By using the tokens to separate the fiat > bitcoin transaction and the transfer it allows users both ends to walk away with part of the transaction as 'physical Bitcoin'.
- Using the Bitcoin network to transfer funds (verifying the receiving address by Skype instead)
- A self-contained sending/receiving machine that can interact with a Bitcoin wallet (or token), and transfer funds (like a PC, running a Bitcoin client?)
Yes. And that I think is what got me most excited about the idea was that of using a machine to verify the value on the token (having the machine check the RFID public key against the blockchain) and to send that same value from a Bitcoin client which does the inverse the other end. Whilst you're talking to someone, pop in one Bitcoin and it pops out however many thousands of miles away
A simple means to let money go where people want it to without the learning curve.
Personally, I think that Bitcoins might be a bit too dangerous from a regulatory perspective if you are starting a vending machine business like this. I believe it can be done but you would need quite a bit of information on each of your customers on both ends for money laundering regulations, and live with the risk of a shutdown as you'd be the easiest target for Bitcoin unfriendlies, bank lobbyists, and western union lobbyists. The Bitcoin network needs to gain trust and more user acceptance first.
Otherwise, there is nothing stopping you from implementing this!
This had crossed my mind and I think you're right. Apparently even just buying GBP for Bitcoin is likely this year to start coming under the auspices of the Financial Services Authority meaning one will have to have passed an exam to trade let alone to be responsible for the international aspect.
Then of course the question of whether there's a business case for it. My guess is, as I sort-of knew but as Stephen Gornick put clearly, it also needs to be local for the recipient. So without forking out for a massive network abroad to serve one community here the odds of it working from that perspective are getting thinner by the minute.
Even 5% is more than enough to generate a nice little side income for people to trade bitcoins face-to-face. So before there is a need for some machine to automate this process, what should be seen first is a growing number of individuals offering this trading. When there is a sufficient amount of that activity, then steps to automate it at an even lesser cost start to make sense.
I think that is much more sensible than what I had in mind. In fact it could just be an informal network of individuals rather than an organisation that can be held responsible for the international aspect. For instance if/when a means of receiving/sending with a dumb phone with SMS is worked out it could be a matter of using smartphones this end to sell them the BTC and giving them a contact in their family's city with whom they could meet the other end with their old Nokia to receive their Rupee or whatever.
THEN, as you say, if ever there becomes sufficient activity between two particular locales it is easier to make the business case for investing and setting up an automated solution, rules permitting!
Thanks again, tf
