Cryptocurrency ATM debuts in Sioux Falls

Sept. 2, 2019

Purchasing Bitcoin or other cryptocurrencies is now as easy as a trip to downtown Sioux Falls.

The city’s first ATM offering cryptocurrency has been installed inside Shriver Square at 11th Street and Phillips Avenue.

It’s from North Dakota-based Digital Cash Services, which is owned by Eric Olson and installs and services the machines in North Dakota and South Dakota.

The machine in downtown Sioux Falls started operations late last month and is the only publicly listed cryptocurrency ATM in the state.

“That’s part of why I started doing this,” said Olson, who became interested in cryptocurrency in 2011 and started his business about a year ago.

“I went to conventions and talked to companies doing ATMs, but they’re all working on Tampa and Atlanta and Chicago. They’re putting machines in big cities, and they don’t care about coming to Sioux Falls or Fargo. And I didn’t want us to be the last place to get it.”

He began talking with providers and secured a relationship with CoinFlip, which promotes itself as the nation’s premier cryptocurrency ATM provider.

“It’s just a nice, convenient way for people to get into cryptocurrency,” Olson said. “Some of the online exchanges can be complicated to get into or take time to get money through a wire transfer. The machine, on the other hand, is pretty straightforward.”

Customers enter their name and phone number to get started. For larger buys exceeding $900, identification is required.

“You just follow the instructions and tap the screen,” Olson said. “It has a bill acceptor just like any vending machine. You’re putting in dollars, and you’re getting out whichever coin you want, usually to a smartphone. They put in their money and hold up their phone screen with a QR code, and it drops the coins onto their phone.”

The machine does not dispense physical money. All cryptocurrency is digital. The ATM allows customers to buy Bitcoin, Dash, Ethereum, Litecoin, Tron, Motocoin and Chainlink.

“It’s definitely not just Bitcoin. We have a variety of coins,” Olson said. “Ethereum, for example, is for ‘smart’ contracts. You can create pieces of software that do various things on top of Ethereum, and you need the Ethereum to drive those contracts, so it’s a different use case.”

Cryptocurrency also can be used as a less expensive, faster way to transfer money, he added, including for people living in the U.S. who need to send funds to family overseas.

The Sioux Falls machine is a one-way machine, meaning it sells cryptocurrency but doesn’t convert it into cash.

Olson tried a two-way one in Fargo but said it didn’t make sense yet. He also has a machine in Mandan, N.D.

“Everybody buys. Nobody sells,” he said. “It’s very rare for someone to sell it back in, and they tend not to sell much back in.”

He also will be posting information at the Sioux Falls machine for how people can learn more about cryptocurrency and about local meet-up events.

“At first, it (business) will be from people looking for the closest and cheapest place to buy some Bitcoin,” he said. “It will take some time to develop. What I’ve noticed in the other locations is it starts slow, but it grows.”

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Cryptocurrency ATM debuts in Sioux Falls

Purchasing Bitcoin or other cryptocurrencies is now as easy as a trip to downtown Sioux Falls.

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