Bitcoin vending machine Robocoin launched in Canadian coffee shop Robocoin ATM changes bitcoins to Canadian dollars and vice versa It first scans user's palm to ensure they do not make multiple deposits Funds are then moved to or from a virtual wallet on their smartphone By the end of 2014, the technology is expected to be rolled out worldwide Since its launch five years ago, Bitcoin has been edging its way into the mainstream. Now one trendy Vancouver coffee shop is planning to speed up the process with the launch of Robocoin, the world's first bitcoin ATM. The blue and silver ATM machine, operated by Vancouver-based Bitcoiniacs and Nevada-based Robocoin, changes bitcoins to Canadian dollars and vice versa. The world's first ever permanent bitcoin ATM has been unveiled at a coffee shop in Vancouver, Canada Bitcoin, currently worth about $210 (£130.87) each, is a decentralised virtual currency, meaning it doesn't have a central bank. Its value rose from $13 (£8.10) in January to a high of $266 (£165.76) in April as more businesses and consumers used them to buy and sell online. The currency is now being treated like gold, with some investors using them to hedge against currency fluctuations and speculating on their rise. The Robocoin kiosk, which looks like the average ATM but with hand and barcode scanners, opened for business on Tuesday. The ATM, named Robocoin, allows users to buy or sell the digital currency known as bitcoins. Once only used for black market sales on the internet, bitcoins are starting to be accepted at a growing number of businesses Users can scan a QR code on their smart phone, allowing bitcoins to be transferred into their digital wallet Bitcoin is a distributed peer-to-peer digital currency that functions without any central authority, such as the Bank of England. The currency was launched in 2008 and is traded within a global network of computers. Bitcoins can be bought with near anonymity, which supporters say lowers fraud risk and increases privacy. But critics say that also makes bitcoins a magnet for drug transactions, money-laundering and other illegal activities. Bitcoins are currently worth about $210 (£130.87) each. Their value rose from $13 (£8.10) in January to a high of $266 (£165.76) in April as more businesses and consumers used them to buy and sell online. A bitcoin investor, Norwegian Kristoffer Koch, made a huge profit, after he forgot he bought £17 of currency four years. He recently found out he was sitting on a small fortune now worth more than half a million pounds. By mid-morning people were lined up to swap their bitcoins for cash, or to deposit cash to buy more bitcoins. "It's as easy as walking up to a machine, scanning your hand, entering some cash and buying bitcoin," Jordan Kelley, chief executive of Las Vegas-based Robocoin, the company that builds the ATMs told Reuters. With this, it's a two-minute process. For any online exchange, it's at least two days. Bitcoins can be transferred without going through banks or clearing houses, thereby cutting fees. With the bitcoin ATM, users scan their hand to confirm identity, and then funds move to or from a virtual wallet on their smartphone. The system limits transfers to $1,000 (£623) a day, in an effort to curb money laundering and other fraud. After completion, the user is provided with a QR code on screen and a receipt. Bitcoiniacs, the local dealer that operates the ATM, will roll out four other kiosks across Canada in December. By the end of 2014, they expect to roll the technology out worldwide. Bitcoin is not a recognised currency in Canada, so Ottawa's anti-money laundering watchdog, the Financial Transactions and Reports Analysis Centre, does not monitor its trade. Still Bitcoiniacs' founders say they are working with the agency to be ready for when Canada does start regulating them. Bitcoins were launched in 2008 and are traded within a global network of computers. A user is instructed on how to scan his palm to ensure he does not exchange more than $1,000 a day The money is traded in real time on Canada's VirtEx exchange, moving it into the user's online bitcoin wallet They are not backed by a single company or government, but their release is tightly controlled, mimicking a central banking system's control over the minting of money. Curtis Machek, left, uses the world's first bitcoin ATM at Waves Coffee House in Canada. 'It was so easy,' he said. I wanted to try out this new machine that hopefully will change the world The world's first bitcoin ATM is located inside Waves Coffee House in Vancouver, Canada. In Vancouver dozens of people attend weekly bitcoin meet-ups and a member co-op is promoting it to local retailers The virtual currency is gaining hold among businesses and consumers, a key step to a bigger role. "I think it's definitely going mainstream," said Bitcoiniacs co-founder Mitchell Demeter. I think as things progress, and the infrastructure is built, it will become easier for people to buy and sell, and so more people will start using it. In Vancouver, for example, dozens of people attend weekly bitcoin meet-ups and a member co-op is promoting the currency to a growing list of local retailers. At Waves, Vancouver resident Chung Cheong used bitcoin to pay for his mug of tea and was happy to mull over the future of the digital currency. "It's been said that we're at the stage where email was in 1992," he said. Is it risky? Sure. But look at how the Internet and email changed the world.