Re: Kyrgyzstan bitcoin experiment promises migrant workers big savings
To impact how they transfer money home, the ATM has to work the other way around. Convert BTC into the local currency (or dollars).
I think you misunderstood the concept. 
The idea is:
Employee gets paid in FIAT
Employee goes to ATM machine and trades FIAT for bitcoins
Employee sends bitcoins to family member through Bitcoin network like any other bitcoin payment
Family member takes bitcoins and trades for local FIAT
That's the whole process as I would understand it, especially since sending FIAT directly means things like Wire Transfers, international money orders, etc, which get pretty costly at times compared to Bitcoin transfers.
For your last step "Family member takes bitcoins and trades for local FIAT" they'd need an ATM that works
the other way around, like I said in my post. The currently available ATM may be useful for many things but does nothing to facilitate "sending money home to Kyrgyzstan"