HotwirePE introduces first Bitcoin bank in Australia

Hotwire Pre-emptive (PE) Intelligence Group, an Australia-based web technology company, has introduced Denariuz Bank as the first bank in the world that will use Bitcoin as the main currency.

Hotwire Pre-emptive (PE) Intelligence Group, an Australia-based web technology company, has introduced Denariuz Bank as the first bank in the world that will use Bitcoin as the main currency.

HotwirePE CEO, Dr Craig Steven Wright, said they seek to turn Bitcoin into an internationally regulated currency and investment tool that uses secured micro-payments for e-commerce transactions between anyone, at anytime, anywhere, and on any-device.

"Bitcoin is not just a currency, it is a new backbone and commercial foundation for the Internet delivering solutions and enabling the next generation of online systems and services," Wright added.

In addition to traditional financial products such as saving accounts, ATM cards, credit cards and loans, the Denariuz Bank will launch new peer-to-peer (P2P) financial products such as P2P loans and P2P investment portfolios.

Denariuz Bank will also offer a secure online currency exchange platform: Coin-Exch and online eWallet solution.

Other trading products including exchanging bitcoin with other national currencies, commodities and bitcoin derivatives will be offered by the bank at the end of 2014.

Wright said the UK recently reversed its classification of bitcoin and said VAT would not be due on sales using Bitcoins.

"We hope the ATO (Australian Tax Office), follows suit and does not force GST to be applied to transactions using the crypto-currency," Wright added.