MONTREAL -- Will that be cash, credit card or Bitcoin?A small number of Canadian businesses now accept Bitcoin, the digital currency that made its debut five years ago, and has been gaining momentum ever since.Among the retailers is Quebec bed-and-breakfast operator David Mancini, who expects the payment method will have a practical appeal for foreign tourists visiting his community of Baie-Saint-Paul."You do not have to transfer U.S.dollars to Canadian, or pesos, etc.," said Mancini, 30, who runs the Gite TerreCiel.Bitcoin transactions are seen as more convenient than other forms of payments as they are sent directly and instantly from one person to another, avoiding processing and other fees usually charged by banks or third parties.Travellers can avoid avoid carrying cash, or paying fees on travellers cheques or for currency exchanges, said Mancini.Mancini has already convinced a handful of other community businesses -- the local coffee shop, hair salon, gift shop, acupuncture clinic and Tai chi martial arts school -- to accept Bitcoin, too.

"So if there's a tourist who comes here, they can spend their whole trip in Bitcoin," Mancini said.The half-dozen merchants in Baie Saint-Paul are among 143 Canadian businesses accepting the digital currency, according to the Canadian Bitcoin Business Directory.To use Bitcoins, users must first set up a so-called digital wallet, which gets managed through an app.The transactions involve buyer and seller scanning each others' smartphones to transfer the Bitcoins.Vancouver saw its first Bitcoin automatic teller machine go live in a downtown Vancouver coffee shop last fall, followed by Toronto and Ottawa.Consumers can exchange Canadian cash for the digital currency at the current exchange rate.But there remain concerns for the business community, according to researcher David Descoteaux, who recently prepared a report on the currency for the Montreal Economic Institute.Descoteaux points out is is almost impossible to have any legal recourse in cases of fraud as, once confirmed, transactions are irreversible.

The volatility of the value of Bitcoins, which is not regulated by any central bank, is also an issue.bitcoin sweatshirtIt jumped 50 per cent on Nov.bitcoin bedeutung18 after regulators signalled that digital currencies could be acceptable but plunged 30 per cent on Dec.bitcoin danske kroner5 after China's central bank banned Bitcoins as currency, according to the online exchange Mt.Gox.mine litecoins macFans of the currency say that because there's a finite supply of 21 million Bitcoins, the currency will continue to appreciate.bitcoin huisBut, for businesses, the value of transactions could fluctuate greatly before the Bitcoin transactions are transferred into a hard currency, such as Canadian dollars.advanced litecoin mining

Bitcoin was recently listed at $885 on VirtEx, Canada's virtual exchange to buy and sell Bitcoin.Descoteaux said businesses are also wary of the tax implications of using Bitcoin, as any sales would have to be declared as income.The Canada Revenue Agency has said using digital currency must be included in the seller's income for tax purposes and the amount included would be the value of the good or service in Canadian dollars.It also notes that digital currency can also be bought or sold like a commodity and any resulting gains or losses could be taxable income or capital.As Bitcoin becomes more popular banks and governments are likely to step in and regulate it, Descoteaux said, and there will be more fees as it becomes mainstream.Montreal company Bokor Renovation has done one transaction with Bitcoin in the "thousands of dollars" and owner Drazen Bokor is eager for more Bitcoin customers."The set up was easy," said Bokor."I don't pay any fees.This is a very fast way to get the money."

Major Canadian online retailer ClearlyContacts.ca has started to accept Bitcoin as payment for the sale of contact lenses and glasses.CEO and founder Roger Hardy said his company does business in 20 currencies and Bitcoin is now one more.While it's still a niche form of payment, it's got "global buzz," Hardy said from Vancouver.The Bitcoin Alliance of Canada makes pitches to businesses and entrepreneurs about the digital currency.Executive director Anthony Di Iorio doesn't see any downside for Bitcoin right now."The price will just continue to go up as more and more merchants start accepting it," Di Iorio said from Toronto.TORONTO – A Calgary company is looking to boost the profile of the world’s newest, and most controversial, currency with the launch of six more teller machines in Toronto that deal in the virtual currency Bitcoin.“With Toronto being the main commercial centre, I think it’s a natural fit,” said Kyle Kemper, vice-president of business development with CAVIRTEX, a Bitcoin exchange and service provider, at the launch Tuesday in Toronto’s financial district.

“We’re flexible, dynamic and we’re on the forefront of technology and I think that’s something we can be proud of,” he added.READ MORE: 16×9 investigation into Bitcoin’s remarkable riseKemper said the six new machines, which have been installed in select locations, brings the number of Bitcoin teller machines in Toronto to 19 and a total of 30 across Canada.Bitcoins, created in 2009, are an international virtual currency that are traded online and not regulated by banks or a central authority.Their appeal lies in the ability to make online transactions with relative anonymity and without fees.Users can install a Bitcoin wallet on their computer or mobile phone, which will generate a special address to which others can send payments.The currency’s appeal is growing, with publicly traded companies such as computer technology company Dell Inc.and travel booking service Expedia Inc., among the major businesses accepting Bitcoin payments.For all the excitement, the currency’s unregulated nature regularly triggers big swings in the exchange rate and leaves it vulnerable to security concerns – an issue that has been raised by several countries.

Ottawa’s Finance Department warned in an internal memo earlier this year that the high level of anonymity and lack of regulation associated with Bitcoin transactions may make the virtual currency “an attractive payment method for criminals.”WATCH: Bitcoin – fad or reality?And the head of the U.S.Consumer Financial Protection Bureau said “consumers are stepping into the Wild West” when dealing with virtual currencies.On Monday, a U.S.cyber security company said a hacker using a Canadian Internet service provider hijacked traffic from foreign networks to steal more than US$83,000 in Bitcoin over a four-month period.Those affected will likely never recover their Bitcoins.But others see the currency’s potential over its risk.Kemper said CAVITREX has over 40,000 registered users and has traded over $93 million in Bitcoin.Corey Jason uses the currency in his web development and marketing business in Toronto.Whenever possible, Jason says he tries to buy supplies that also deal in Bitcoin and he encourages his clients to consider accepting Bitcoin payments.“There’s a crossover effect for our businesses,” said Jason, who was at the Toronto launch.

The benefits are that it cuts down on the cost of doing business and makes operations run more efficiently, he said.Brad Edwards, Jason’s business partner, said he uses Bitcoin for currency trading – and, without providing details, claimed it’s been a profitable venture.“I got a taste for high-risk investment.I’m investing money I can afford to lose,” said Edwards.“I’m confident that Bitcoin is the future of money.”“We’ve met people 1/8in Toronto 3/8 who are paying their rent in Bitcoin, who buy their groceries in Bitcoin,” added Jason.“There are people who are looking to only spend their money on merchants that accept Bitcoin.”READ MORE: Researchers say hacker used Canadian Internet provider to steal $83K BitcoinsGateway Newstands is placing the machines in its convenience stores and kiosks.Noah Aychental, vice-president for marketing and promotions, said Gateway hopes to become the first national convenience store chain to accept Bitcoin.“Once we see the success rate and the redemption rate of these machines, I think the next natural step would be to accept the coins at Gateway,” said Aychental.The teller machines allow holders of the cryptocurrency to quickly access their funds, said Kemper, adding that the company is on track to installing two more machines in Alberta and British Columbia.But CAVITREX’s machines aren’t yet outfitted to dispense cash like conventional bank machines – The BTMs, about the size of a post office box and painted bright red and white with a Maple Leaf logo on the front, will only facilitate the purchase of Bitcoins.Kemper said the machines will eventually be able to spit out cash and deposit converted Bitcoins through a debit card.The daily user limit for purchasing Bitcoins is $3,000 and there is also a fee for using the machines that ranges between five to 10 per cent.One Bitcoin exchanges today for nearly C$600.