NEW YORK—The bungee-cord like price changes taking place among the various cryptocurrencies is also having an effect the expansion and usage of Bitcoin ATMs.
As has been widely reported, the price of Bitcoin, Dogecoin and other digital currencies have been rising (and lately falling) based on rumors, tweets and even Saturday Night Live host appearances.
But companies continue to move forward with various initiatives. MoneyGram and the cryptocurrency exchange Coinme are facilitating crypto use through a partnership in which those using MoneyGram services can buy Bitcoin to use for transfers, and to exchange it back into cash at a Coinme kiosk.
Not ‘New,’ But…
“The concept of a crypto kiosk isn't new, but many so-called Bitcoin ATMs only allow users to buy crypto rather than exchange it back into cash for withdrawal. The Bitcoin ATM brand Lamassu, for example, describes its device as a ‘cash-to-crypto’ machine, with ‘two-way’ functionality being an add-on for its more expensive devices,” Payments Source explained.
Coin ATM Radar recently reported that fewer than 3,000 crypto kiosks and tellers allow users to sell their Bitcoin in person, while nearly 17,000 locations facilitate buys.
The MoneyGram-Coinme arrangement will go live at 12,000 locations in the U.S., drastically expanding the options for selling Bitcoin in person.
Attention from Tax Authorities
Meanwhile, following last week’s precipitous drop in Bitcoin value, cryptocurrency took another blow, this one from the Biden Administration.
The Biden Administration's tax enforcement proposal unveiled last week includes a proposed requirement that cryptocurrency transfers over $10,000 be reported to the Internal Revenue Service.
"As with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on," the Treasury Department said in a report released alongside its wider proposals aimed at improving tax collection.