El Salvador, which was the first country to legalize Bitcoin, has seen its position in the ranking of total cryptocurrency ATM installations overtaken by both Spain and Australia.
In September 2021, El Salvador became the third-largest hub for such ATMs, with over 200 installations across the country as part of its efforts to establish Bitcoin as a legal tender. However, Spain installed 215 ATMs in October 2022, surpassing El Salvador to become the third-largest hub. Australia then deployed 99 ATMs in the last quarter of 2022, bringing its total to 219 and overtaking El Salvador as the fourth-largest hub.
Spain currently has the second most installations with 226 ATMs, while the United States and Canada lead the rankings with the most installations. Australia is well positioned to overtake Asia’s 312 ATMs, representing 0.6% of global cryptocurrency ATM installations. Globally, there are 38,602 cryptocurrency ATMs, with 6,071 being installed in 2022 alone.
Growing Cryptocurrency ATMs
The increasing adoption of cryptocurrency ATMs is part of a larger trend towards the mainstream adoption of digital currencies. Bitcoin, in particular, has seen a significant increase in mainstream acceptance and usage in recent years.
This can be attributed to a number of factors, including the increased accessibility and usability of Bitcoin and other cryptocurrencies, as well as the growing recognition of the potential benefits of using digital currencies for transactions.
Benefits of using cryptocurrency ATMs
One of the main benefits of using cryptocurrency ATMs is the ability to purchase and sell digital currencies in a fast and convenient manner. These ATMs allow users to easily exchange their local currency for cryptocurrency and vice versa, making it easy for individuals to enter the cryptocurrency market. This is particularly useful for those who may not have easy access to traditional financial institutions or may not be comfortable using online exchanges to buy and sell digital currencies.
In addition to the convenience factor, cryptocurrency ATMs also offer users a high level of security. Transactions made through these ATMs are encrypted, which helps to protect users’ personal and financial information from being compromised. This is particularly important given the increasing number of cyberattacks and data breaches that have affected traditional financial institutions in recent years.
The increasing adoption of cryptocurrency ATMs is also indicative of the growing recognition of the potential benefits of using digital currencies for transactions. Digital currencies offer a number of advantages over traditional fiat currencies, including the ability to transfer funds instantly, low transaction fees, and the ability to send and receive payments from anywhere in the world. These benefits are particularly appealing for those who may not have access to traditional financial services or who may be looking for an alternative to traditional currencies.
However, it is important to note that while the use of cryptocurrency ATMs is growing, there are still a number of challenges and risks associated with using digital currencies. One of the main risks is the potential for price volatility, as the value of digital currencies can fluctuate significantly in a short period of time. This can make it difficult for users to predict the value of their investments and may result in significant losses if the value of a digital currency decreases unexpectedly.
In addition to the potential for price volatility, there is also the risk of fraud and other illicit activity associated with digital currencies. As with any financial instrument, it is important for users to be aware of the potential risks and to take steps to protect themselves from fraud and other malicious activity. This includes only using reputable exchanges and ATMs, and taking steps to secure their digital wallets and other personal and financial information.
In contrast to the growing adoption of cryptocurrency ATMs, Nigeria has implemented limits on ATM cash withdrawals in an effort to encourage the adoption of its central bank digital currency, the eNaira. The government has limited cash withdrawals to $225 (100,000 nairas) per week and is encouraging the use of alternative