Industry News and Items to Watch:

ATMIA is pleased to welcome five new members in the Canada Region. Members are welcome to view contact details in our member database.

Returning Members for this period include:

For full contact Details on any of the above companies consult our website at https://www.atmia.com/regions/canada/ or contact Curt Binns @416-970-7954 od [email protected].

Introduction to Bitcoin ATMs

The ATM Industry Association has released a commissioned research report into the digital currency BitCoin and what it might mean to the industry. The paper, written by Tremont Capital Group, one of the nation's leading consulting firms specializing in the ATM industry, is called "An Introduction to BitCoin ATMs" and contains special reference to North America where the currency originated.

The comprehensive analysis, conducted by Sam M. Ditzion, a widely respected ATM industry expert, offers an overview of the history of BitCoin, how the currency works, recent controversies, the evolving regulatory landscape, and the expanding role of BitCoin ATMs.

ATMIA Members have access to the full report as part of their membership benefits – if you are an ATMIA Member, please log on this webpage to download the report.

Non-members may purchase the report for a limited time at a discounted price of $145.00 USD until April 30th 2014 (Regular price $195.00 USD). If you are not a member please contact Sharon Lane, ATMIA's Global Director, Finance and Member Services.

Digital Currencies and Alternative Methods of Payment

The Bank of Canada, along with authorities responsible for oversight of the financial system, monitors developments regarding digital currencies and alternative methods of payment. The Bank of Canada's mandate includes not only monetary policy (i.e. setting interest rates to keep inflation at 2%), but also producing bank notes and overseeing the stability of the financial system. Financial stability considerations are what would prompt the Bank to take a greater interest in BitCoin and other alternative means of payment.

Payments systems should evolve to meet the needs of consumers and businesses and support the competitiveness of the Canadian economy by providing a safe and efficient means to transfer value.

Payment systems that process a high value and time critical payments, have fewer substitutes and are highly interconnected will require a relatively high degree of oversight and regulation because of the potential systemic risks they pose to the Canadian financial system. The Large Value Transfer System, which processes over $150 billion of payments per day, is an example of one such system and is overseen by the Bank of Canada reflecting the Bank's legislated responsibility for overseeing systemically important payments systems.

Smaller, stand-alone payment systems for which there are many substitutes - like BitCoin -- should generally require much less intensive oversight and regulation because they pose much less risk to the Canadian financial system as a whole. Nevertheless, these payment systems should be designed and operated to meet the needs of Canadians which would include convenience and ease of use, price, reliability, safety, and effective redress mechanisms. Disclosure of price, risks and performance standards is important to enable Canadians to make informed choices.