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The banking and ATM worlds consider how to use Bitcoin

Bitcoin has been considered an unwelcomed competitor to the centralized world of monetary transactions and bankers. Financial leaders such as Jamie Dimon, CEO of Chase, and Warren Buffett have cast negative reviews toward the virtual currency. The back office of financial institutions, however, is quietly trying to find how to use bitcoin efficiency of transfer across all boundaries, reports SFGate this afternoon.

Representatives Of A Bitcoin Kiosk Company Demonstrate The Currency Product On Capitol Hill
Photo by Drew Angerer/Getty Images

While it is sneered at by some very impressive financial names, it is viewed realistically by other leaders of securing transfers. Fiserv, a provider of technology for payments and accounts, is impressed by its ability to transfer bitcoins through encryptions and send secure transfers. Marc West, senior vice president of Fiserv takes it seriously and studies it method for future possibility of a system use.

A system provider to banks such as Fis is looking at the technology of transferring money from a public ledger to another in-house account such as the bitcoin transfer system. Transfers are accomplished with its block chain of bitcoins and registration system. It is actually a sophisticated system that arrived in 2009 from a white paper by the elusive Satoshi Nakamoto, a person or persons, who released Bitcoin to the world.

The sophisticated system of record transaction of each bitcoin makes it registered and not available for duplication within the system. Because of the public record, each transfer of bitcoin is recorded and attributed to the placement owner. Spending of bitcoin due to the software public record system maintains its accuracy and integrity. Bitcoin miners or programmers who produce new bitcoin blockchain and record transfer of existing bitcoin transactions are paid in bitcoin.

“It's safe to say that every bank is looking at what's going on with bitcoin and those types of technologies," said Steve Kenneally, a vice president of the American Bankers Association. "Most of the larger banks are investigating it. The larger the banks, the further along they are." Technology advancement is not ignored despite public comments while the serious investigate how to use this uniquely brilliant system.

Proof that Bitcoin is emerging as a serious component of the future of virtual currency lies in the emerging payments industry and other government groups within the U.S. have held meetings. The CSBS hearing in Chicago this Thursday of US State Bank supervisors brings more credibility to its future. There will be an open to the public hearing and information on a wide range of panel presentations and discussion regarding emerging payments, retail payments, as well as Bitcoin.

Another proof to the serious placement of Bitcoin as it enters reputable circles is the ATM service. Providing consumer convenience in another sought after area such as the ATM machine is very serious business. According to Coin Desk today there are 15 ATM manufacturers competing globally to place bitcoin ATM machines. Robocoin placed the first bitcoin ATM in Rayburn Hall at the U.S. Congress last month.

Last week Robocoin announced an online bitcoin bank with its ATMs across the world serving as branches will be placed in operation this summer. "The world's newest global bank represents an evolution in Bitcoin and a potential disruption to the massive remittance industry," the company said in a statement.

The Robocoin Bank will allow customers to manage their bitcoin with ease and security while providing 100 percent cryptographic proven reserves, instant cash withdrawal and easy global transfer. Easy transfer includes sending bitcoin to a phone number anywhere in the world and between customers in the Robocoin network.

A combined report from the Electronic Funds Transfer Association (EFTA) and the ATM Industry Association (ATMIA) have found that bitcoin ATM placements provide serious competition and in turn provide acceleration to the adoption of bitcoin currency for use.

EFTA CEO, Kurt Helwig states: “I think that ATMs are a natural fit for something like bitcoin. A mix of the old and new. ATMs are a proven, safe, convenient, consumer-friendly channel that consumers understand very well, and something that consumers around the world have a great deal of confidence in.”

Helwig’s point is well taken. Both the banking industry, the merchant credit card and ATM industries are taking notice from bitcoin on how to blend the simple idea of transferring a currency around the globe quickly and efficiency. EFTA senior consultant Bob Bucceri suggests that bitcoin may be a main player in the ATM market. The public hearing with the CSBS this Thursday for emerging payments and bitcoin will be revealing for its future.

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