Bitcoin ATM Gets Surprise Launch in Biggest Boston Train Station

Pete Rizzo (@pete_rizzo_) | Published on February 19, 2014 at 23:32 GMT | Bitcoin ATM, Investors, News

Though they missed becoming the first operational bitcoin ATM in the US by less than 24 hours, the entrepreneurs behind Liberty Teller caused quite a stir when they revealed that they would boot up their new Lamassu machine in Boston’s busy South Station on 19th February.
The largest train station in the Boston metropolitan area, South Station holds 13 tracks and seven platforms as part of the city’s public subway system, and is the last stop for New England commuters who take the public commuter rail. These additional lines provide extended service to nearby metros Providence and Worcester.
Speaking to CoinDesk, Liberty Teller founder Chris Yim said he couldn’t have asked for a better location:

“South Station gets 25 million travellers a year, and there’s really nothing else like that. None of the other bitcoin ATM locations in the world come close to that.”

The United States was previously rumored to have its first bitcoin ATMs by the end of the month, but high-tech hubs Seattle and Austin were pegged as the frontrunners to take the technology to the public for the first time.

Timing the launch

A look at the group’s Twitter account shows Liberty Teller founders Yim and Kyle Powers wasted no time after receiving their Lamassu brand ATM on 18th February. The former Wharton School classmates and long-time bitcoin enthusiasts posted pictures of their unwrapping of the unit, and just the next day, had tweeted pictures of their fully operational machine at South Station.

Addressing the timing of the launch, Powers said that Liberty Teller was just “in the right place, at the right time” to be one of the first to market, and that the machine is really just part of their larger goal to help bitcoin buying become faster and more secure through the effective use of kiosks
When asked about the New Mexico ATM installed the day prior, Yim was quick to note that Liberty Teller had made an industry first with its installation.
“It wasn’t public,” he added.

Customer response

While Yim and Powers did not provide exact figures for the number of visitors, they were enthusiastic about the attention the launch had received so far.
By lunch time, the ATM had attracted a sizable crowd of interested onlookers, with most asking Yim and Powers introductory questions about bitcoin and the machine.
Liberty Teller chose to give out a small amount of bitcoin to every person who stopped by. The bitcoin was handed out via a paper giveaway wallet that explained how the recipent could receive the bitcoin online. Yim and Powers are self-funding the ATMs, but are also calling for interested community members to donate to the machine as a way to spur adoption.
One enterprising user who made a purchase was Davis Foster, an app developer from Wellesely, Massachusetts, who was on his way to work when he noticed the machine.
A long-time bitcoin supporter, Foster said he was unaware of the ATM, and simply made a purchase to show his support.

What’s next for Liberty Teller?

For now, Yim and Powers say their ATM will make its home in South Station. Liberty Teller is renting a corridor near one of the station’s rear entrances, and is currently sharing its space with an apparell vending machine.
Liberty Teller hopes to build a broad network of ATMs that includes other retail spots, though its founders acknowledged they were likely to face competition.
Yim noted that the bitcoin-accepting merchants he spoke with see the appeal in hosting a machine that allows consumers to spend more bitcoin in store.
“We’re going to bring in a ton of traffic, and that’s going to be attractive to businesses that want to present a high-tech focus, as well as one that’s consumer friendly,” Yim said.
Images and video by Pete Rizzo

The First US Bitcoin ATM Arrives in New Mexico

Daniel Cawrey (@danielcawrey) | Published on February 19, 2014 at 01:14 GMT | Bitcoin ATM, News

After months of rumors and speculation, the first bitcoin ATM in the United States is now in operation.
The machine, manufactured by Lammasu, is located in a cigar bar called Imbibe in Albuquerque, New Mexico, and is being operated by Enchanted Bitcoin, run by Eric Stromberg.
Lamassu and Enchanted Bitcoin worked together to make the US bitcoin ATM a reality.
Zach Harvey, CEO of Lamassu, told CoinDesk that Stromberg was able to obtain proper regulatory permissions quickly, and that as a result, the launch occurred upon receipt of the ATM.

“He’s been very good at concentrating on what had to be done to be fully compliant. Yet he kept things simple enough to manage a launch only weeks after receiving his machine.”

Compliance

New Mexico happens to be one of only two US states that do not require a money transmitter business (MSB) license to operate. The other is South Carolina.
Stromberg’s briskness has allowed his ATM to reach the US market in a short time. The absence of procedural money transmitter requirement in New Mexico may have helped, too.
Harvey told CoinDesk that Lamassu’s ATMs have verification features built-in:

“We’ve always had compliance in mind. Our machine was designed to scan IDs barcodes and OCR for use with third party verification services.”

Compliance means that Lamassu has to remain vigilant on the latest money transmitter policies.
“It’s an ongoing project. It’s been a challenge to find a way to take the regulatory requirements and make them quick and painless for the end-consumer,” he said.
Physical and not just digital security is important as well, said Harvey.

“Our machines were designed to resist any standard smash-and-grab attacks. Anything more than that would render any ATM vulnerable.”

Demand

The current turnaround time for a Lamassu ATM is 10-14 weeks. Harvey told CoinDesk this is because the devices have become rather popular.

“This is only due to the recent rise in demand, we are making them and shipping them as fast as possible.”

Lamassu is building its ATMs as fast as it can, but it has competitors. Robocoin is planning to launch ATMs in Seattle and Austin, Texas, soon. Further, LocalBitcoins.com recently announced it is building a 2,732 BTC ATM of its own.
Because of this, Lamassu needs to deliver ATMs to customers as fast as possible to compete with a growing number of rivals.

A close-up rendering of what the Lamassu bitcoin ATM looks like. Source: Lamassu

“We are currently ramping up production from 40 machines a month to 60 machines a month, and then to 80 machines a month. Our goal is to build up inventory and reduce lead times to zero,” Harvey said.
Harvey wants to be able to serve its customer base as quickly as possible.
“If people want our machine, we want to be able to give it to them now,” he said.
Lamassu ATMs are available to order. The price is $5,000 for one unit, $4,500 for 5-9 units and $4,000 for 10 units or more.
The company does accept fiat in the form of bank wires, but it prefers payment in bitcoin, according to its website.

First US Bitcoin ATMs Coming to Seattle and Austin

Nermin Hajdarbegovic | Published on February 18, 2014 at 12:40 GMT | Companies, News, US & Canada

Seattle and Austin will soon become the first US cities with bitcoin ATMs, provided everything goes according to plan.
The machines are coming from ATM manufacturer Robocoin and the company claims they will be installed by the end of the month, Reuters reports.
Robocoin ATMs are more elaborate than their Lamassu counterparts. They are cash-only machines and they have a few additional security features, such as biometric and optical scanners.
In theory, this should allow much higher levels of security than regular ATMs. The barcode scanner can be used to scan QR codes and transfer bitcoins to your mobile. The ATMs can also scan government issued IDs, including driver’s licences.

First in the US

Robocoin ATMs have been deployed in several markets, including Canada. However, in other parts of the world deployment has proved problematic. Robocoin was supposed to install ATMs in Taiwan and Hong Kong, but Taiwanese authorities quickly moved to block the deployment of machines to the island nation.
This should not be the case in Austin or Seattle, but there is still a lot of regulatory ambiguity. It all boils down to how the authorities choose to classify the Robocoin contraptions; they can view them as kiosks, ATMs or even vending machines that dispense a commodity in the form of bitcoins.

Singapore and London

In related news, Bitcoiniacs are planning to install Robocoin ATMs in both London and Singapore by mid-March. London is currently witnessing three different bitcoin startups racing to install the city’s first bitcoin ATM.
Singapore was chosen by Bitcoiniacs due to its relatively clear rules on bitcoin taxation, and of course the city’s trend setting image in much of Asia. As a major regional financial hub, Singapore remains the logical choice for good PR.
Seattle Image via Shutterstock