The joint venture agreement will develop a two-way ATM solution for buying and selling Bitcoin with plans for the entire global network of Stargroup ATMs, initially with 500 in Australia, to allow buying and selling of Bitcoin.
Currently there are less than 20 ATMs in Australia that can facilitate a Bitcoin transaction, and conversion fees are in the range of 4 to 8 per cent of the transaction value.
Additionally, the majority of these ATMs are solely one-way ATMs, meaning users can only acquire Bitcoin via the ATM.
The development of a two-way ATM will mean users can not only acquire Bitcoin but can also instantly convert their Bitcoin into AUD cash at the ATM.
The joint venture agreement will eventually see the two companies taking the ATM global, but they initially plan to focus on Australia.
These ATMs are hoping to solve a particular pain point for Bitcoin users who currently have to wait a number of days to convert Bitcoin into AUD using online digital currency exchanges.
Just this year the global Bitcoin market has grown from less than $20 billion to over $70 billion today. The two companies believe now is the ideal time where to rollout a large-scale ATM program.
Within Australia, Stargroup has deployed approximately 500 traditional ATMs and manages approximately 2,400 ATMs via StarLink.
DigitalX will focus on developing the blockchain technology to bring the ATM concept to life and to facilitate the Bitcoin transactions.
Business News Australia
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