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Bitcoin 'vending machine' now live in New Mexico

The Bitcoin Machine is officially fired up inside the Imbibe cigar bar.

February 20, 2014

A cigar bar in Albuquerque, N.M., is blazing trails along with its high-end stogies.

According to an announcement from the self-described Bitcoin vending machine manufacturer Lamassu, the Imbibe cigar bar now houses what Lamassu says is the first known Bitcoin sales kiosk operating in the United States.

The Imbibe Bitcoin Machine is operated by another company called Enchanted Bitcoin, which according to the Lamassu announcement, recently received accreditation from the U.S. Department of Treasury, Financial Crimes Enforcement Network, which requires that every Bitcoin exchange register as a Money Services Business.

But the term "vending machine" might be a bit misleading for the Bitcoin Machine, since there are no goods physically dispensed from the compact device. Instead, the machine is deposit-only, allowing users to buy Bitcoin with U.S. dollars or other currencies and then transfer the proper amount of funds into a digital wallet.

"This is very special for us. Enchanted Bitcoins are paving the way for mainstream Bitcoin accessibility in the Unites States," Zach Harvey, CEO of Lamassu, said in a statement. "They have put in a lot of time and effort on the compliance side, and we're very excited to see them open for business."

News of the Lamassu machine arrives on the heels of new deployment plans for Robocoin, which announced that its Bitcoin ATMs are slated for U.S. debut later this month. Yet even as Bitcoin's physical footprint continues to grow, the virtual currency could be in for a test of its long-term viability. Recent hacker attacks on Bitcoin exchanges, along with black market trader arrests and road-blocking government edicts, could pose challenges to the currency's value and liquidity.

Check out the video below to see the Bitcoin Machine in action. According to Lamassu's website, the machine is smash-and-grab resistant with thick metal mounting plates, a dual locking system and an internal strong box for cash, but is not meant for unattended or outdoor use.