Andrew Watson
From December 2020 to January 2022, an average of over 1,000 crypto and Bitcoin ATMs were set up on a monthly basis.
Crypto ATMs, which are essential for the widespread use of cryptocurrencies, have seen a significant decrease this year. In the first two months of 2023, the total number of crypto ATMs worldwide went down by 412.
Since the start of 2014, the total number of crypto ATMs has increased steadily while providing access to millions of individuals around the world, allowing them to convert cryptocurrencies to their local fiat currencies. From December 2020 to January 2022, the installation rate of crypto and Bitcoin ATMs rose to more than 1,000 each month. Unfortunately, the bear market quickly caused this rate to decline.
In September 2022, there was a decrease in the total number of crypto ATMs installed, a first in history. Then, 2023 saw a new low when the amount of crypto ATM installations experienced a decrease for two months straight.
At the start of 2023, the international crypto ATM network saw a decrease of 289 machines, with another 123 removed in the month of February. Initially, the receding counts were thought to be due to political problems, diminishing profits, and a prolonged bear market. Recently however, service vendors have gone to exploring lower-cost options for running their businesses.
Recently, Bitcoin Depot, a company that provides crypto ATMs, switched their 7,000 physical machines to the BitAccess software, leading to a decrease in operational expenses. This change saved them around $3 million per year in software licensing fees.
On the other hand, Mastercard, a large payment processor, collaborated with Binance to introduce a debit card that allows Latin American customers to pay with cryptocurrency.
Guilherme Nazar, the general manager of Binance Brazil, mentioned in a press release that despite the potential of cryptocurrency in being used for payments, there is still a large amount of room for adoption to happen.
In addition, when it first came out, the card allowed up to 8% cash back in crypto on qualified purchases, and there were no charges on some ATM withdrawals.