Bitcoin has reached a level where a large-scale ATM roll-out provides a commercial opportunity.
The agreement covers the entire global network of Stargroup ATMs with the initial roadmap to focus on Australia.
At present, 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% of the transaction value.
The vast majority of these ATMs are only “One-Way ATMs”; meaning users can only acquire Bitcoin and add it to their Bitcoin wallet via the ATM.
Todd Zani, chief executive officer and executive chairman for Stargroup, commented:
"Stargroup is pleased to partner with DigitalX on this project and leverage its unique ownership of its ATM manufacturer to develop a two-way ATM where a Bitcoin owner can not only buy Bitcoin but more importantly can cash their Bitcoin out.
"This development may also be able to be applied to other cryptocurrencies and be distributed internationally."
Details of the joint venture
Stargroup will develop ATM software to process a two-way ATM transaction for the Bitcoin currency.
While DigitalX will develop an API to facilitate Bitcoin transactions with the ATM software for a two-way transaction for the Bitcoin currency.
Leigh Travers, chief executive officer for DigitalX, commented:
"With our growing success in Blockchain consultancy services we view this opportunity as a suitable fit to offer ordinary Australians exposure to crypto currency.
"The success of this joint venture with Stargroup will add long-term revenue channels to our business and additional value to our shareholders."
The Stargroup network
Stargroup provides end-to-end ATM deployment and electronic payment system services and solutions.
Within Australia, Stargroup has deployed circa 500 ATMs in Star Payments and manages approximately 2,400 ATMs via StarLink.
Stargroup has a direct ownership interest in NeoICP Korea Inc, a private Korean company that manufactures ATMs, back office, coin counting, banking and casino settlement solutions.
NeoICP Korea have around 16,000 ATMs and back office machines in South Korea bringing the total number of ATMs managed approaching 19,000.