Crypto ATM installations have seen a steady decline across the world over the past several months. While some ATMs have been taken out of operation due to geopolitical tensions and revenue decline, providers like Bitcoin Depot have started converting the operating software of physical Bitcoin (BTC) ATMs to improve bottom lines. Bitcoin ATM installations have undergone a major transformation with the integration of BitAccess software.
Bitcoin Depot recently converted the operating software of all 7,000 crypto ATMs and kiosks to a software-based offering powered by BitAccess. The software conversion drive came after Bitcoin Depot acquired majority equity in BitAccess in November 2022. Months before the deal, Bitcoin Depot had revealed plans to go public in 2023 via an $885 million deal with a special-purpose acquisition company.
The software conversion of the crypto ATMs, which vertically integrates Bitcoin Depot’s hardware and software, eliminates annual software licensing fees. The fees previously accounted for $3 million in annual operational costs. The move aims to streamline the process while increasing security measures, which will benefit both the consumer and the company.
BitAccess was once a market leader in the first half of 2022, but since July 2022, the company has seen a consistent decline in total ATM installations, according to data from Coin ATM Radar. As shown in the above graph, BitAccess is currently down to third position after Genesis Bytes and Genesis Coin, both of whom have increased their market share in the same timeline. Explaining the motive behind the move, Bitcoin Depot’s vice president of BTM operations, Jason Sacco, stated:
“By swapping out the existing hard drive with one preloaded with Bitaccess software, we quickly completed the software conversion while avoiding certain technical issues that can happen in field conversion projects.”
Sacco also revealed that the first 6,000 of Bitcoin Depot’s Bitcoin ATMs were software converted in 10 weeks. The increase in crypto ATMs is directly proportional to the amount of crypto exposure for the general public.
When El Salvador opted for Bitcoin as a legal tender, President Nayib Bukele announced the country would build a supporting infrastructure of 200 ATMs and 50 branches. This was a massive boost to the crypto ATM industry, and the move is being replicated in other countries. Australia, for instance, has overtaken El Salvador to become the fourth-largest crypto ATM hub.
However, not all countries are open to crypto ATM deployment. The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), recently announced that all crypto ATMs operating in the U.K. are unregistered and illegal. At the time, FCA’s executive director of enforcement Mark Steward shared the intention to disrupt unregistered crypto businesses in the country.
The adoption of cryptocurrencies has increased in recent years, and this has changed the way people think about financial technology. Crypto ATMs provide users with the opportunity to leverage the usefulness and utility of cryptocurrencies by letting them purchase digital assets with fiat currency. This has made them a convenient tool not just for investors but also for individuals who want to use digital assets for their day-to-day transactions.
Moreover, the global pandemic has resulted in more people moving towards digital payments, and crypto ATMs offer a viable alternative for those who may not have access to traditional banking or want to avoid the hassle of transacting through banks. This has led to a rise in the number of crypto ATMs globally.
In conclusion, the crypto ATM industry has undergone a massive transformation with the integration of BitAccess software. This software conversion drive has led to a streamlining of the process and increased security measures, which will benefit both the consumer and the company. However, not all countries are open to crypto ATM deployment, and regulation remains a challenge for the industry. Nevertheless, the increasing adoption of cryptocurrencies and the usefulness of crypto ATMs will continue to drive the industry forward.
