Buying Bitcoin just got as easy as cashing in your loose change. Coinstar, the company behind the coin-counting machines found in grocery stores across America, has partnered with cryptocurrency ATM operator Coinme to enable Bitcoin purchases at over 20,000 kiosks nationwide. The announcement, which went live in mid-January 2019 and was still dominating crypto headlines through January 25, represents one of the most ambitious attempts to bring cryptocurrency to mainstream retail.
TL;DR
- Coinstar partners with Coinme to sell Bitcoin at 20,000+ grocery store kiosks
- Initial rollout at Safeway and Albertsons stores in California, Texas, and Washington
- Users can buy up to $2,500 in Bitcoin per transaction using cash
- Coinme is the first state-licensed Bitcoin ATM company in the US
- Bitcoin trading at $3,599.77 as broader market cap sits near $120 billion
From Spare Change to Digital Gold
The partnership between Coinstar and Seattle-based Coinme is elegantly simple in its execution. Customers walk up to a participating Coinstar kiosk, select the “Buy Bitcoin” option, insert cash — up to $2,500 worth — and receive a voucher with a code. That code can then be redeemed on Coinme’s website, where the Bitcoin is transferred to the user’s digital wallet.
No bank account required. No wire transfers. No waiting days for an exchange verification. For the millions of Americans who are unbanked or underbanked, or simply prefer to deal in cash, this removes one of the most persistent barriers to cryptocurrency adoption.
Coinstar, based in Bellevue, Washington, operates the largest fully automated, self-service coin-counting kiosk network in the world. With nearly 20,000 kiosk locations across nine countries — and thousands in the United States alone — the infrastructure for mass Bitcoin distribution already existed. The partnership with Coinme simply activated it.
Starting Small, Thinking Big
The initial rollout was deliberately measured. Bitcoin-enabled Coinstar kiosks first appeared in select Safeway and Albertsons grocery stores across three states: California, Texas, and Washington. These are high-density population centers where demand for accessible crypto purchasing options was expected to be strongest.
Both companies indicated that the three-state launch was just the beginning, with plans to expand to additional US markets and retail partners throughout the year. The phased approach allowed Coinme to stress-test its voucher redemption system and compliance workflows before scaling nationwide.
The Regulatory Landscape Shifts Beneath
The Coinstar-Coinme launch coincided with a notable shift in the regulatory climate. Just days before, the Pennsylvania Department of Banking and Securities issued guidance clarifying that cryptocurrency exchanges and Bitcoin ATMs do not require Money Transmitter Licenses in the state. The rationale: under Pennsylvania law, only fiat currency issued by the US government qualifies as “money.” Since crypto kiosks exchange fiat for digital assets directly — rather than transmitting fiat to a third party — they fall outside the MTL framework.
This kind of state-level regulatory clarity, even if limited in scope, was a tailwind for businesses like Coinme looking to expand their physical footprint. While federal oversight remains complex — and was further complicated by the ongoing 35-day government shutdown — states like Pennsylvania were quietly making it easier for crypto businesses to operate.
Market Context: The Bear Winter
The Coinstar launch came during one of the most punishing periods in crypto history. Bitcoin was trading at $3,599.77 on January 25, 2019, down roughly 82% from its all-time high near $20,000 just over a year earlier. The total cryptocurrency market capitalization hovered just below $120 billion, a far cry from the $800+ billion peak.
Ethereum was faring even worse, declining 4.59% over the week to trade around $116. XRP dropped 3.30%. The overall market shed about 1.6% for the week, continuing the slow bleed that had defined the post-ICO crash landscape.
Yet amid the sea of red, a handful of altcoins posted eye-catching gains. Holo (HOT) surged an astonishing 76.98%, while Waves climbed 12.99% and Factom added 14.59%. These outlier performances offered a reminder that even in the depths of a bear market, speculative energy never fully disappears.
What the Experts Were Saying
At the World Economic Forum in Davos, held the same week, the conversation around cryptocurrency was decidedly mixed. Edith Yeung, a partner at 500 Startups, offered a perspective that resonated with the Coinstar news: “I think it is a really good thing that now the crypto secondary market has, in some way, fizzled out because the people who are here now building are the ones that really believe in the technology.”
The Coinstar-Coinme partnership embodied that ethos perfectly. While speculators had fled and prices had collapsed, the companies building infrastructure for the next cycle were laying the groundwork in grocery store aisles across America.
Why This Matters
In the depths of crypto winter, when Bitcoin was under $3,600 and the prevailing narrative was one of doom and decline, Coinstar and Coinme were building bridges to mainstream adoption. The significance of being able to buy Bitcoin at the same machine where you cash in your penny jar cannot be overstated — it normalized cryptocurrency in the most mundane, accessible way imaginable.
This was infrastructure investment during a bear market, the kind of unglamorous, behind-the-scenes work that ultimately enables the next bull run. While Davos panelists debated whether Bitcoin would go to zero, real companies were making it easier for real people to buy their first fraction of a coin. The gap between elite skepticism and ground-level adoption has always been where the most interesting crypto stories live.
Disclaimer: This article was originally published on January 25, 2019, and reflects the market conditions and news events of that date. Cryptocurrency prices and market data cited herein are historical. This content is for informational purposes only and does not constitute financial advice.
buying btc at the same place you return beer bottles. if thats not mass adoption i dont know what is
20,000 kiosks at safeway and albertsons. say what you want about 2019 adoption but this was actual infrastructure being built while everyone complained about the bear market
$2500 per transaction in cash no bank account needed. this was huge for unbanked people. shame it didnt get more attention
Coinme being the first state licensed BTC ATM company in the US and nobody remembers them. Everyone talks about Coinbase ignoring the real ground level adoption.
Remember the voucher system? Insert cash, get a code, redeem on Coinme. Simple enough that my parents could do it. That was the point.