ATM Manufacturing Giant Diebold: The Future of Bitcoin ATMs is Worrying

According to Devon德文•沃森, vice president of global ATM software and strategy at financial services giant Diebold, the Bitcoin ATM industry is unlikely to survive in its current form.

In a recent interview, Watson discussed the uncertainty surrounding the future of the bitcoin ATM market, which has produced machines specifically designed to convert real-world fiat currencies into digital currencies since late 2013. According to CoinDesk’s third quarter bitcoin status report, there are now more than 400 bitcoin ATMs operating worldwide, double the number from last year.

However, Watson believes that compared to more universal traditional products (such as those provided by Diebold), Bitcoin ATMs have so far relied on a "flawed distribution model" that can only benefit a small part of the market and are unlikely to develop into a competitive business.

Watson told CoinDesk at Money20/20 in Las Vegas last week:

“Bitcoin ATMs only offer one benefit to customers, whereas regular ATMs offer many different types of transactions to customers, meeting many different needs.”

Still, Watson believes that Bitcoin ATMs are successful in some ways, not least in proving that physical financial services machines are still necessary in an increasingly digital world of financial services.

Watson said Diebold is already studying how to apply blockchain technology to transaction services, including providing digital currency withdrawal and transfer services.

He said that the company was studying blockchain technology out of "interest", so the final decision would depend on the needs of its customers.

“Banks haven’t adopted Bitcoin yet, but we can sense that this is a trend.”

Watson said it would be easy for companies to implement the technology, so it would just be a matter of seeing if there was a lot of demand for it. Watson was not immediately clear on how Diebold’s internal testing was going, but he said his company had not yet released “any consumer-facing products” using bitcoin or blockchain.

He said:

"For us, it's more about when and how this technology might work."

Interest in blockchain

Like many at the Money20/20 conference, Watson said Diebold is now more interested in blockchain technology, particularly permissioned blockchains, or distributed ledgers, where a network of transactions can be shared between selected financial institutions or entities.

Watson said he believes such apps could help curb issues around data privacy laws and payment-related data security.

“Permissioned blockchain systems have more interesting potential, but what will be really interesting is the banks being able to adopt this technology.”

Watson said he believes blockchain can advance upgrades to existing financial infrastructure, but he also warned that progress on these issues may not be easy.

“These projects are large and complex, and the technology is still in its early stages, so early backers may face significant resistance.”

Watson said he was impressed by the application of blockchain technology to issue assets, and when he visited MIT, he was excited when he heard others introduce how property rights were transferred through the blockchain system.

Digital Cash

Watson said that although the technology has encountered obstacles in its dissemination, he is still optimistic about the digitization of cash.

This shift has been a top goal for Diebold for some time, and the company launched its cardless mobile cash withdrawal solution in July 2013, which allows consumers to conduct transactions directly with ATMs using their mobile devices.

“There is about $5 trillion in cash currently circulating in the physical world, and that cash circulation is not accessible to payment companies.”

Watson predicts that this shift is likely to happen first in developed countries because he believes there is a greater demand for new financial instruments in these markets, but he also believes that developing countries must adapt to local challenges.

Diebold's latest annual report shows that its revenue outside the United States exceeded 50% of its revenue from international market initiatives in 2013 and 2014.

“I think it will be highly dependent on the region and the clients that financial institutions are targeting in the region, the financial infrastructure that will benefit from exposure to Bitcoin and the regulatory environment that is open to Bitcoin,” he explained.

The mentality of mass consumers

When asked about the future development of startups dedicated to the Bitcoin ATM market, Watson said that although he is not optimistic about the industry's prospects, many people are paying attention to their development.

When Watson was asked for advice on how to develop companies in this new technology field, he always recommended considering the needs of ordinary consumers when developing products.

“As a founder or developer, it’s not easy to think about what you want to build from the perspective of a mass consumer.”

Watson said it is difficult to give a big picture view of future trends in digital currency adoption: “These things take time.”

Original article: http://www.coindesk.com/diebold-blockchain-bitcoin-atm-attempts-flawed/
By Pete Rizzo
Translator: Peterhon
Editor: printemps
Reward address: 16V6PW9wu1pFVb1R3LiGJKEwZAFHu9MmtA
Source (translation): Babbitt Information