Stillwater's decision to ban cryptocurrency ATMs isn't about stifling innovation. It's about protecting its citizens from predatory financial scams that are rapidly spiraling out of control. We’re not just talking about a bottom line, we’re talking about real lives, personal savings, and communities devastated. Forget the tech bros promising you a decentralized utopia – this isn’t for Wall Street, it’s for Main Street.

Is "Innovation" Worth $213,000?

Since the beginning of 2023, Stillwater residents have collectively been defrauded out of nearly a quarter million dollars by crypto scams. Let that sink in. And that’s not chump change either, that’s real cash plundered from the pockets of blue collar business owners. The statistics are alarming. And the worst thing are not the numbers per se, but the stories behind them that should really get your blood boiling.

Consider the example of a 75-year-old woman, already cheated out of $5,820 with the potential to lose another $14,180. This isn’t just a theoretical argument over the merits of a digital currency— this is a vulnerable constituent being victimized. Are we honestly going to make the decision to look only at the supposed upsides of crypto ATMs? We can’t overlook the concrete dangers they present to our seniors and financially unsavvy people.

The City Attorney is spot on: scammers are exploiting these machines, and the ATM operators profit handsomely from the misery they enable. In return, they rake in 20-30% fees—all while millions are getting robbed blind! For consumers, it’s like a 21st century highway robbery, except this time the masked criminals are behind lines of code.

Crypto's Anonymity Enables Criminals

Because let’s face it, the fact that you could remain anonymous is what draws a lot of people to cryptocurrency. That’s exactly what creates a breeding ground for criminal behavior. It's the digital equivalent of a Swiss bank account, except instead of numbered accounts, it's cryptographic keys.

This isn't about being anti-technology. It’s about understanding that unbridled, uncontrolled innovation like this can be dangerous and even devastating. We don’t let anybody build a nuclear reactor in their backyard, do we. What we do have are regulations, safeguards, and laws to prevent harm to the public. Cryptocurrency, at least in its Wild West current-state iteration, needs even more scrutiny and control as a result.

Proponents of crypto often advocate for it as a means of increasing financial inclusion and democratizing the financial system. What is the cost of financial exclusion it uniquely engenders for those who get scammed? What of the disenfranchisement of those who will lose their life savings to these new digital hucksters? Such a promise of innovation rings hollow when it’s built on a foundation of fraud.

Protecting Citizens, Not Profits

Athena Bitcoin, whose 3,500 ATMs in 35 states makes it the largest US ATM operator, advertised themselves as being committed to fighting financial crime. Their legal challenge to Stillwater’s ordinance says a lot. They’re putting their bottom line ahead of the community’s safety and well-being.

Specifically, they claim that the ban directly contradicts state law. Maybe it does, maybe it doesn't. Stillwater needs to be ready to oppose this every step of the way. The cost of lost or potential legal battle is minimal. It’s nothing compared to the cost of allowing these scams to go unchecked.

Forest Lake's approach – a registration process with hefty fees and fraud monitoring – is a potential compromise, but it's not a guaranteed solution. For these companies profiting off the backs of our most vulnerable, a $2000 fee is a drop in the bucket. And leaving this up to a cap of “no more than two substantiated incidences of fraud” feels pathetically insufficient. How many more victims must be swindled before we muster the political will to act?

Stillwater’s city council should receive all due accolades for standing up against bad behavior. They’ve understood that protecting their citizens from economic harm comes first. Protecting the public is much more important than serving the needs of a handful of crypto ATM operators. This isn’t anti-business, this is pro-community.

We need to be vigilant. Now more than ever, we need to defend policies that save our communities from fiscal disaster. Keep in mind though, security and stability are NOT prerequisites to change. They are the crucial underpinnings, the very tables, that hold our innovation and momentum aloft.