I'm surprised this hasn't became a possibility sooner. The one problem I have is that it doesn't look like a normal ATM. The key to anything becoming well used is acceptance and this thing has so many inputs compared to a normal machine.
I think with a good UI and a digital money scanner similar to the ones used in self service tills a normal looking cash machine could have been created.
A kiosk that can sort unwanted foreign currency and exchange it for pounds, dollars or euros has been launched in London.