So, the 37coins team is travelling around Asia, integrating our SMS bitcoin wallet with the leading bitcoin markets: we are very aware of this issue.
Specifically let’s talk about ATMs. When travelling, it is common to get local currency from an ATM. Usually travelers use foreign ATM cards from their home country. This is because opening a local bank account requires too much time and effort. Of course, it may note even be possible. Waiting the few days to receive a physical bank card can be too long. Not to mention waiting in line at the bank to apply.
Now, withdrawing money from an international ATM may look simple and nice. Its exactly what you do in your own country, right? However there are hidden fees and restrictions that need to be considered.
First let’s consider the usage fee. If travelling in Bangkok, the average ATM withdrawal fee for each transaction is 150–180THB (about 4.6 — 5.5USD). While staying in Bangkok, a typical lunch costs only 60THB. Roughly that means the machine takes 3x meals for each ATM withdrawal.
These ATM fees are not an isolated problem in Bangkok. Recently we moved to Manila, Philippines to work with coins.ph, one of our local partners. The ATM fees are just as bad.
This time the fee is 200PHP, which is about 4.4USD. In Manila a cheap lunch costs 60–100PHP. Each time you withdraw money from the ATM, it costs you two meals..
OK. You might ask, ‘Why don’t you just withdraw all of the money that you need at one time? You only have to pay the fee once!” (Seriously? You want to carry all that cash while you travel?)
Therein lies a different problem: transaction limits. One can only withdraw a certain amount of fiat per transaction. In Bangkok the limits were 10,000THB (307.462 USD). In Manila it is 10,000PHP (223.414 USD). There is no standard withdrawal limit. Some machines have different limits. And you won’t know the limit until you try. Sometimes the ATMs don’t have enough cash inside the machine. And, in this case, the limit is artificially lowered to ensure that more people can use the machine (thereby generating more fees).
Should I try all of them, seriously?
While in Bangkok I stopped by the MBK mall to buy a secondhand iPhone. (My other phone got stolen on the road in Siam.) Retailers in the mall don’t accept credit cards. So I had to withdraw money from the ATM. Two times! It cost 300THB for each withdrawal. There goes six lunches or maybe a really decent fancy dinner. Poof. (Or, *ka-ching* for the banks.)
With the sad part of this story out of the way. Let’s talk about an alternative.
What if you have bitcoin? You now have a whole new set of options. Of course there are bitcoin exchanges, but there is also ATMs for bitcoin.
This is a bitcoin ATM in Bangkok, and here is some notes from Johann, one of our co-founders.
- Cafe in bitcoin style, bitcoin images and icons everywhere
- Atm was quite huge, wider than usual one, solid impression
- Touchscreen Interface, bill dispenser, bill acceptor, QR code scanner, wallet printer, card slot and finger print scanner
- Min withdrawal 1000 baht.
- Money immediately dispensed, no confirmation wait
- Spread around 5%
Yes,it still looks like there is a long way to go. Certain ATMs only allow you to buy bitcoins, but not withdraw money.. It is still a little hard to find bitcoin ATMs, as you can see on the bitcoin ATM map. But also consider that even the big bank ATMs aren’t ubiquitous. While in Thailand, I could only find one Citibank ATMs in Bangkok.
Now, don’t get disheartend; it’s a bit early to be disappointed. Once you have bitcoin, there are lots of options to get local currency, not just through an ATM. In 2 weeks I will get paid in bitcoin, and we can talk more about that experience then!
