How BTCU.biz launched 4000 Bitcoin ATMs in Ukraine

[shmadz]

“For us, bitcoin is more than a way of transferring money. It is an ideology of free people. [A government's] attitude to bitcoin is a litmus test, it shows the true face of the government. That’s why we support bitcoin,”

I think I like this Stanislav guy.

[btcu.biz]

Guys, thank you very much for criticism and support. I`m a member of The Btcu.biz Team and I`ll be glad to answer all your questions.

[_smudger_]

Guys, thank you very much for criticism and support. I`m a member of The Btcu.biz Team and I`ll be glad to answer all your questions.

Will you publish the amount of Bitcoin transacted from your ATMs on a daily/weekly/monthly basis?

Also how do you know there is demand in Ukraine for this, what research have you done?

[bitcoiner49er]

ATM's with fees like these make Bitcoin saving 3% of the usual credit card fees less relevant.

Not when your currency has lost 30%, utilities are up 50% and unemployment is going up everyday. Or you are working for zero pay, because you want to keep the job you have in hopes that in the future the company will pay you.

Compared to the Ukrainian economy, bitcoin is stable.

[btcu.biz]

Our project is a start-up of the first water. And I can say it is a research in certain sense. After some period of time some data will be published.
Bitcoin`s price as you know differs seriously from one exchange to another. Sometimes btc-e and bitstamp have up to 2% difference. We use our own rate.

[infested999]

Our project is a start-up of the first water. And I can say it is a research in certain sense. After some period of time some data will be published.
Bitcoin`s price as you know differs seriously from one exchange to another. Sometimes btc-e and bitstamp have up to 2% difference. We use our own rate.

How did you get an agreement with the Ukrainian banks to let you install Bitcoin ATMs. Have you received any problems from currency-regulation laws? For example, the government makes you check the photo identification of all customers.

[negafen]

Our project is a start-up of the first water. And I can say it is a research in certain sense. After some period of time some data will be published.
Bitcoin`s price as you know differs seriously from one exchange to another. Sometimes btc-e and bitstamp have up to 2% difference. We use our own rate.

How did you get an agreement with the Ukrainian banks to let you install Bitcoin ATMs. Have you received any problems from currency-regulation laws? For example, the government makes you check the photo identification of all customers.

ATM has camera and I assume user already have an account with the bank to use it.

[btcu.biz]

Bank operates terminals and we are just a "button" on the terminal`s screen. Bank can take money for a company by the agreement. There is no law in Ukraine that forbids using Bitcoin.

[infested999]

Bank operates terminals and we are just a "button" on the terminal`s screen. Bank can take money for a company by the agreement. There is no law in Ukraine that forbids using Bitcoin.

Did anyone on the team already have experience working with/for a bank to get a chance to make an agreement with the banks?

[jbreher]

Guys, thank you very much for criticism and support. I`m a member of The Btcu.biz Team and I`ll be glad to answer all your questions.

I would just like to congratulate you for this accomplishment. In my mind, getting in bed with the banks is a long-term negative. But in the immediate term it is certainly worth it to make Bitcoin so pervasive in your market.

If it is not considered a trade secret, I would like to suggest you publish a short paper on how you engaged the banks with this idea.

[btcu.biz]

Some members of our team have banking experience and good reputation. It helped us to establish business relationships with the bank. 

[Jamie_Boulder]

Even though this is quite amazing and adoption is growing I can understand why some people don't see it as a big move for Bitcoins.

BTC are around to rid of the credit card companies, not be used as a tool by them to make even more money from outrageous fees. None the less Bitcoins are free for ANYONE to use even those we dislike

[iflash]

I think the story is missing a major point: What is the fee of those ATMs?

[jbreher]

I think the story is missing a major point: What is the fee of those ATMs?

I disagree that this is a major point. The central innovation is turning on thousands of Bitcoin terminals overnight. The fee is a distraction. Those that find value worth the fee will use it, those that do not will not. If not enough use it, the firm will lower the fee in order to induce others to use it, maximizing sales and thereby profits. The market will end up setting the price.

[Erdogan]

btcu.biz: How do you buy the bitcoins you sell on the terminals?

[Kiloday]

So how did this relatively small Bitcoin startup succeed on this scale? The trick is that the Bitcoin ATMs aren’t just Bitcoin ATMs. They’re actually conventional ATMs owned by the “National Credit” Bank of Ukraine which have had their software updated to support BTC transactions. By partnering with a popular bank and leveraging existing infrastructure, BTCU.biz was able to leapfrog ahead of many of the dedicated Bitcoin ATM companies, without having to personally raise the capital necessary to put that many machines on street corners.

So all they did was a software change? Seems a bit too easy. Almost like cheating.

Also it's weird to see that a bank was involved in this. I was under the impression that banks hate Bitcoin. Maybe things are a bit different there.

I think the story is missing a major point: What is the fee of those ATMs?

From the same website as above:

The machines sell BTC at a rate of $693 per Bitcoin, $45 above the current CoinMarketCap price of $648, a transaction fee of about 7%, which is on the high side, but may well be worth it for the convenience.

[Elwar]

This is a smart approach that should be attempted wherever the ATM software allows it.

I know my bank has a separate key for buying stamps. Likely an agreement between the bank and the post office to add software to make it easy to buy stamps.

I am sure it would be just as easy to create another button for buying bitcoins. Actually easier since I assume the ATM requires special hardware to spit out a stamp. For bitcoins you just need the receipt to have your address and QR code.

[btcu.biz]

We are happy to inform you about our new tool. Now you can buy bitcoins at btcu.biz with your plastic card from anywhere in the world. Try it and share your opinions!

[Elwar]

We are happy to inform you about our new tool. Now you can buy bitcoins at btcu.biz with your plastic card from anywhere in the world. Try it and share your opinions!

How do you account for chargebacks?