You need extra hardware and software to have a machine that is capable of accepting cash. It’s not done because it’s simply not necessary.
The point of an ATM is for people to be able to conveniently access their cash at any time at multiple locations throughout the city.
You often need cash. You pretty much never need to deposit cash at a random place at a random time. When’s the last time you thought to yourself “*oh shit, I’ve got $100 extra in my wallet, better deposit it quickly*”?
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