First U.S. Bitcoin Vending Machine Installed in New Mexico Cigar Shop

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The first Bitcoin vending machine in the U.S. was unveiled in an Albuquerque, N.M., cigar shop on Feb. 18, 2014.

Image: Flickr, Hannu-Makarainen

By Fran Berkman2014-02-18 20:13:48 UTC

Albuquerque, N.M. — not tech-obsessed San Francisco or New York — appears to be the first city to install an operational Bitcoin vending machine to the U.S.

The machine is up and running, as of Tuesday, at a cigar shop called Imbibe near the University of New Mexico, according to an announcement by Lamassu, the machine's manufacturer. The vending machine allows people to insert cash — in exchange, it gives a digital stash of Bitcoins.

See also: A Complete, Interactive History of Bitcoin

Though the machines have been hailed as Bitcoin "ATMs," Lamassu eschewed the term in favor of "vending machine" since it does not function like a true ATM in that it doesn't dispense cash.

Prospective Bitcoin vending machine operators have been trying to bring the devices to other cities, such as New York and San Francisco, for some time, but they've faced regulatory hurdles. Enchanted Bitcoins, the company that owns the Albuquerque machine, said it established a full anti-money laundering program and registered as a money services business with the U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN).

Check out the video below for a short demonstration of how the Bitcoin vending machine works.

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Topics: Albuquerque, Bitcoin, bitcoin ATM, cryptocurrency, U.S., US & World