In 2022, the growth rate of cryptocurrency ATMs has slowed due to a market-wide decline that has harmed the value of most digital assets.
Between the first and second quarters of 2022, the number of new crypto ATM installations worldwide decreased by 32.26 percent, from 2,362 to 1,600 units.
As of the conclusion of the first quarter, there were 36,732 crypto ATMs, up from 34,370 at the beginning of the year. According to Coin ATM Radar statistics, there were 37,642 installed ATMs at the conclusion of the second quarter.
Notably, crypto ATM installations soared in 2021 due in part to the market’s soaring value, which subsequently declined in 2022. For example, Bitcoin’s price plunged 70 percent from its all-time high of about $68,000 in November of last year. The asset struggles to maintain a price in excess of $20,000
Bitcoin’s performance during the second quarter of 2022 was one of its weakest in almost a decade. According to Finbold, Bitcoin dropped about 56 percent of its value throughout the quarter.
As a result of the market collapse, several crypto-related firms have adjusted their operations. Diverse organisations have been compelled to suspend operations and adjust their strategies in anticipation of a probable future market recovery.
In general, cryptocurrency ATMs contribute to the widespread acceptance of various assets. It is important to note, however, that ATM transactions only enable investors to acquire cryptocurrencies in exchange for fiat cash and have no effect on the overall liquidity.
Despite the market crash, the number of nations prepared to recognise Bitcoin as legal cash has decreased in 2022. For example, the adoption of Bitcoin as legal cash in El Salvador led in part to the increase in the number of crypto ATM installations in 2021.
Several South American nations were said to be preparing the legal framework for adopting Bitcoin as legal money. However, conversations around the matter have subsided.
Future of Cryptocurrency ATMs
The future performance of the installations will also be of interest in light of regulatory concerns around a piling. Notably, some countries are preparing to implement a crypto regulatory framework that aims to combat vices such as money laundering.
Authorities have already issued warnings against the usage of cryptocurrency ATMs. The Federal Bureau of Investigation (FBI) issued a warning about hackers using crypto ATMs and QR codes to deceive naive consumers in November of 2017. These problems may be addressed by new rules, hence they are likely to have an effect on regulations.
In March, the British Financial Conduct Authority (FCA) ordered all crypto ATM providers in the nation to immediately shut down their consumer-facing machines or face legal repercussions.
Also Read: Kevin O’Leary Warns Of Imminent Crypto Panic, Predicts Industry-Wide Chaos
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