The ease with which crypto ATMs allow users to buy and exchange digital assets has been one of the driving forces behind the surge in their adoption over the past year. According to recent research, it has seen the installation of approximately 20,000 more ATMs worldwide and this trend is expected to continue to grow.
The aggregate value of crypto ATMs worldwide will reach $75.01 million by 2021, according to a recent report by Grand View Research. It also shows that this is expected to expand at a compound annual growth rate (CAGR) of 59.2% from 2022 to 2028, at which point it will be valued at around 1, 88 billion dollars.
The ATM sector, like the larger crypto industry, is dominated by leading digital asset Bitcoin, as it accounts for more than 30% of the total revenue collected by ATMs by 2021. The position is that the report shows an increase in demand for BTC ATMs driven by “the growing acceptance of Bitcoin as a method of payment worldwide.”
Indeed, several large-scale retailers have accepted Bitcoin or other cryptocurrencies as a payment method in the recent past, including Walmart and AMC Cinemas. Moreover, the support from traditional payment channels like Paypal also contributes to this trend.
Other factors supporting the growth of crypto ATMs also include the adoption of governments like El Salvador. The country installed more than 200 crypto ATMs after accepting Bitcoin as a legal tender last year. Additionally, efforts being pursued by ATM companies to mitigate the risk of cyberattacks have also increased their prospects as secure cryptocurrency exchange platforms, the report said.
It also forecasts that this sector is currently dominated by the restaurant and hotel sector, which accounts for a revenue share of more than 33%. However, it will be surpassed by the commercial space segment in the future.
A similar trend can be seen emerging, as leading ATM maker NCR Corporation acquired crypto ATM provider LibertyX earlier this week. The move has enabled its customers to buy and sell crypto assets across more than 750,000 ATMs and digital touchpoints across 140 countries.
Similar recent developments also point towards the expansion of crypto ATMs beyond North America. This includes the installation of Uruguay’s first crypto ATM earlier this month, with full funding from the country’s government.
This is the most recent addition to Latin America’s burgeoning crypto ecosystem, as the region accounts for only 0.2% of BTC ATM installations globally. Santo Blockchain is aiming to accelerate this growth even further, as it plans to purchase 300 BTC ATMs within the year and install them across the continent. The first recipient of the 50 ATMs will be Panama, it was announced this week, with Costa Rica and Columbia next in line.