By George Ward
This year, there has been a significant decrease in cryptocurrency ATMs. For many, crypto ATMs are one of the most critical infrastructures for the widespread use of cryptocurrencies.
In the first two months of 2023, the total number of cryptocurrency ATMs installed across the globe decreased by over 400.
Decreasing Number Of Bitcoin ATMs
Since 2014, the total number of cryptocurrency ATMs has steadily grown. It caters to millions of consumers across the globe for the easy conversion of cryptocurrencies into fiat currency. Data also shows that between December 2020 and January 2022, about 1,000 crypto and Bitcoin ATMs were being placed monthly.
It wasn’t until September 2022 that the total number of cryptocurrency ATMs decreased for the first time in history. Many attribute this decline to the prolonged bear market.
The number of crypto ATMs dropped by 209 in the first month of this year alone, followed by a further phase-out of 123 machines in February. Service providers have been testing cheaper operational alternatives to cut costs, which could also be the reason for the decline in these ATMs.
Crypto ATMs And Increasing Adoption
Meanwhile, Bitcoin Depot, a cryptocurrency ATM distributor, recently transitioned all 7,000 of its physical machines to a BitAccess software platform. The move by the company helped minimize its operational expenditures tied to ATM software license payments, which cost $3 million annually.
Nevertheless, industry players believe the crypto ATM sector will flourish once the crypto winter ends. They cite the example of Binance’s partnership with card payment giant Mastercard to substantiate their claim.
Binance Guilherme Nazar, the general manager of Brazil, stated in a press release that although payments are one of the earliest and most basic use cases for cryptocurrencies, adoption still has much room for growth. In addition, at the time of introduction, the card provided about 8.5% cash back in digital currencies on qualified payment settlements and zero fees for specific ATM withdrawals.