ASX-listed Digital CC, the first bitcoin “miner” in the world to be publicly listed, has ditched its original business because of a nosedive in the price of its chief commodity. Become a SMH member today! Join today and you can easily save your favourite articles, zhenya tsvetnenko bitcoin in the conversation and comment, plus select which news your want direct to your inbox. Digital CC executive chairman Zhenya Tsvetnenko says a decision was made to shift from the original business because the company was losing money.
As much as we believe that bitcoin as a financial instrument can be a valuable tool, we basically have the opinion that it is going to take longer than we thought,” Mr Tsvetnenko said. When we saw the big drop in the value of bitcoin, just like a traditional miner, we had to look for something else to do. We have been slowly winding down our bitcoin mining operations and we will be progressively moving away from using it as a currency. 8 million, mainly because of a big fall in the value of bitcoin during the year.
However, the result is a 69 per cent improvement on its loss for 2013-14. Get the latest news and updates emailed straight to your inbox. Once beta testing is complete at the end of 2015, the company will start a pilot of the app in early 2016. It plans to make money by charging a fee per transaction. Mr Tsvetnenko said for now the company was concentrating on Latin Americans working in the US sending money back to relatives, many of whom don’t have bank accounts. US80 billion was transferred annually from the US to Latin America.
Much of the money ends up in the hands of people living in rural areas, who have to travel long distances to get to remittance provider offices. Instead, Mr Tsvetnenko will recruit “Air Agents”, which do have bank accounts in the country where the recipient lives, to act as “mobile tellers”. They will just need a smartphone to turn the digital exchange of value via the blockchain into cash for the recipient. If you are in the US, you load your account with some funds, send them to your relative in Mexico. This is recorded on the blockchain, so there is irrefutable evidence of the transaction,” he said. The recipient types the air code into the mobile app and the air agent hands out the money minus a small fee.