The UK's first Bitcoin cash machine has been installed in London - allowing people to exchange their digital credits for cash and vice-versa.

Users of the digital-only currency keep their Bitcoins in virtual online wallets and until now used specialist software on their mobile phones or computers to transfer funds to others.

But now Bitcoin has launched its first cash machine in the UK located at the Old Shoreditch Cafe and bar in east London.

And it is no surprise that the location has been chosen due to the cafe accepting Bitcoins as payment since last year.


The custom-designed app is run from essentially a Google Nexus 7 tablet and additional hardware to scan QR codes.

Customers use a mobile wallet app on their phone to display a QR code pointing to their Bitcoin wallet, which the cash machine scans and sends money to.

Paying by Bitcoin is faster for customers than using a traditional debit or credit card.

Transaction fees are also lower than the 2–3 per cent imposed by credit card companies.

The cash machine charges a eight per cent commission but this is hoped to be reduced once the machine, which is currently manually topped up is converted to automated.

Transactions are limited to £1,000 per month for each customer.

What is a Bitcoin ?

Bitcoin is an internet currency that is created using an increasingly complex mathematics formula.

Last week the US Senate described virtual currencies as a “legitimate financial service”.

There are 12 million Bitcoins, worth about $12.9 billion at recent prices.

Bitcoin is not backed by physical assets and is not run by any person or group. Its value depends on people’s confidence in the currency.
