Bitcoin ATM Could Soon Be Opening in Cyprus

Credit: zcopley / Foter.com / CC BY-SA

Yesterday, Jeff Berwick, founder of StockHouse.com and CEO of TDV Media, said that he plans to open a Bitcoin ATM in Cyprus.

Perhaps not surprisingly the cryptocurrency is becoming increasingly popular in southern Europe. From PRWEB: 

Interest in Bitcoin has soared, especially in southern Europe. As Yahoo! reports, downloads of Bitcoin-related apps started rising in Spain over the weekend. For instance, Bitcoin Gold spiked in the Spanish iPhone Finance category from 498 to 72, while another app called Bitcoin Ticket zoomed from 526-52 in just one day. Leading service, Bitcoin App, jumped from 194 to 151 from Friday and Sunday while Spaniards took notice of Cyprus.

While the PRWEB story says that Berwick's Bitcoin ATM will be the world's first Zach Harvey and Matt Whitlock demonstrated their Bitcoin ATM at the Free State Project's Liberty Forum in February.

Thanks to the recent bailout agreement depositors with more than 100,000 euros in Cypriot banks could be hit by a 30 percent loss. A previous proposal, which was rejected by the Cypriot government, would have required that all depositors with money in Cypriot banks contribute towards a bank levy.

It is scary that government officials have been considering the proposals that have been recently discussed in Cyprus. However, as J.D. Tuccille pointed out last week, technology is making it less difficult to avoid government regulations and mismanagements, which given the current situation in Europe is exactly what it looks like an increasing number of Europeans are trying to do. 

Read more from Reason.com on Cyprus and Bitcoin here and here. 

Comments

[Fist of Etiquette]

Those poor Chuck Schumers.

[HazelMeade]

Does that BitCoin coin in the picture actually exist, or is that just a digitally created artists rendering?

[CatoTheElder]

Evidently some firms offer a tangible Bitcoin token.

E.g., http://nolacoin.com/index.php/.....token.html

[CatoTheElder]

A private Internet-based currency in competition with government fiat currency?

What could possibly go wrong?

[CatoTheElder]

Hint:

http://fincen.gov/statutes_reg.....-G001.html

"Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies"

US Dept of Treasury
Financial Crimes Enforcement Network

[OldMexican]

The FinCEN argues that regulations only apply to currency exchanges (e.g. from Bitcoin to dollars) and not to the use of the currency for purchases or other exchanges.

It is still overreach by the government, but as technology and people's ingenuity progresses, it becomes more and more difficult for government to keep track of such transactions or even to have the wherewithal to prosecute enough individuals to discourage the usage of the currency. The government was able to go after e-gold because the whole operation had bodies they could prosecute and assets they could forfeit. Not so with Bitcoin, which is why your run-of-the-mill statists are so affraid of it.

[CE]

The Liberty Dollar people thought the Treasury had given them the okay, too.

[SumpTump]

Bitcoin reminds me of E-Gold. I still have a very bad taste in my mouth from E-Gold.

http://www.WebPrivacy.da.bz

[Lord Humungus]

You know who else still has a bad taste in their mouth?

[CampingInYourPark]

Monica Lewinsky?

[OldMexican]

Re: SumpTump,

Bitcoin reminds me of E-Gold.

That's like saying Top Gun reminds you of Hellcats of the Navy.

Yes, they're both movies... but...

[Jerry on the boat]

I wonder how long they can keep the capital controls until they become unlawful under EU treaty law. It's a very dangerous precedent if they can keep it up for more than a few days/weeks. In fact, it might create bankruns in the other eurozone countries that are too leveraged.

[Brandon]

Isn't that all of them?

[Tulpa (LAOL-PA)]

If most people in the world had half a brain, there would be bank runs in every country on earth.

[Death Rock and Skull]

The world is Brazil.

[wingnutx]

Looks like there were some truck-sized loopholed in those capital controls.

No one knows exactly how much money has left Cyprus' banks, or where it has gone.

The two banks at the centre of the crisis - Cyprus Popular Bank, also known as Laiki, and Bank of Cyprus - have units in London which remained open throughout the week and placed no limits on withdrawals. Bank of Cyprus also owns 80 percent of Russia's Uniastrum Bank, which put no restrictions on withdrawals in Russia. Russians were among Cypriot banks' largest depositors.

ECB officials contacted Latvia, another EU country that has received large Russian deposits, to warn authorities against taking in Russian money fleeing Cyprus, two sources familiar with the contacts said.

"It was made clear to our Latvian friends that if they want to join the euro, they should not provide a haven for Russian money exiting Cyprus," a euro zone central banker said.

[OldMexican]

Re: Thompson,

The worth of bitcoin is based on the peer-to-peer network, which the government can easily track.

Ok, and then what?