Banking on bitcoin.

• Author: Scott, Micheal
• Position: STATE of the STATE

Bitcoin, a global currency and payment network, continues to garner a wealth of media attention. But what impact is it having in Colorado, and what's its appeal?

Southern Hospitality Restaurant in downtown Denver is among the growing number of Colorado businesses that accept the digital currency directly.

"For us, the business ROI is simple in that it allows us to reduce expenses by avoiding credit card transaction fees," said Shawn Owen, COO of Southern Concepts, the parent company of Southern Hospitality, which began accepting bitcoin in May 2014. "Because it's essentially a digital form of cash, our reconciliation process at the end of the evening becomes a breeze. The money immediately hits our bank account, making for a more efficient form of accounting than walking it down to the bank."

Owen is encouraged by the appeal among digital currency enthusiasts, particularly members of the Colorado Bitcoin Society who hold meetings at the restaurant regularly and pay with bitcoin. But while this payment transaction method has meshed well with...