With the current exchange rate of R5 187 for one Bitcoin, there are probably only a handful of people who can afford the virtual currency, but South Africa is the proud owner of its first Bitcoin vending machine.

The concept is rather simple, and works almost like a normal ATM.

By scanning your Bitcoin QR code, you select the amount, insert cash, and the Bitcoin will be deposited into your virtual wallet. The vending machine is situated in Kyalami-based Metroman, and was brought into the country by business partners Rolf Deppe and Monre Botes.

“We decided in February that we wanted to bring a Bitcoin vending machine to South Africa. At the time there were about 100 around the world, but none on the African continent. We wanted to push the envelope, so we ordered one, and three months later it landed on our shores,” business owner Deppe told TechCentral.

According to the vending machine makers Lamassu, the 35.6cm x 48.1cm x 26.9cm unit is “coded and audited by network security experts.” Even though it is fairly small, the makers highlight that it would be very difficult to just up and walk out with it.

“The machine will be smash and grab resistant. It is not meant for unattended or outdoor use, but it will have thick metal mounting plates, a dual locking system and an internal strong box for the cash.”

It is exciting to know that South Africa has its first Bitcoin vending machine, but while the pair is looking to expand the number in the country by potentially placing one in Cape Town, they don’t come cheap. If you order one to nine of the particular unit, they will make you R65 000 poorer – but of you buy more than 10, the price comes down to about R55 000 each.

In July, PayFast announced that all South Africa online shopping sites that make use of their service will now be able to accept Bitcoins as payment. PayFast facilitates the secure and instant transfer of money between online buyers (customers) and sellers (Takealot.com).

[Source – Lamassu, TechCentral]