The status of El Salvador as the fourth-largest crypto ATM center was short-lived as Australia stepped up its game in the subsequent months.
- El Salvador, the first nation to allow Bitcoin, has fallen another rung in the overall number of crypto ATM installations, as Australia records 216 ATMs in 2023.
- As part of El Salvador’s initiative to recognize Bitcoin as legal tender, President Nayib Bukele chose to install more than 200 cryptocurrency ATMs.
- In September 2021, this action made El Salvador the third largest crypto ATM hub behind the United States and Canada. However, in 2022, Spain and Australia surpassed El Salvador’s ATM count.
- Spain became the third-largest crypto ATM hub in October 2022, according to Cointelegraph, after deploying 215 crypto ATMs. At the time of writing, 226 crypto ATMs were operational in Spain, which continued its installation push. The status of El Salvador as the fourth-largest crypto ATM center was short-lived as Australia stepped up its game in the subsequent months.
- According to CoinATMRadar data, Australia deployed 99 cryptocurrency ATMs in the final three months of 2022. Australia registered 219 active crypto ATMs as of January 1, 2023, surpassing El Salvador by 7 ATMs at the time of writing.
- Australia represents 0.6% of all crypto ATM installations worldwide and, at current rate, is well-positioned to surpass Asia’s 312 crypto ATMs. The total number of cryptocurrency ATMs in the world is 38,602, with 6,071 ATMs installed in 2022 alone.
How Does a Crypto ATM Work?
Users can purchase and sell cryptocurrencies via standalone electronic kiosks known as cryptocurrency automated teller machines (ATMs) in return for cash or a debit card. In addition to selling Bitcoin, all cryptocurrency ATMs also sell other cryptocurrencies. Not all cryptocurrency ATMs permit cryptocurrency sales; others only permit purchases.
As opposed to conventional ATMs, which connect to your bank account, cryptocurrency ATMs conduct transactions and send cryptocurrency to users by establishing a connection with their digital wallets. Tens of thousands of cryptocurrency ATMs are present worldwide, the most of which are found in the US.
Crypto ATMs turn deposited cash into cryptocurrency by connecting to a cryptocurrency exchange. The blockchain, a computerized log of bitcoin financial transactions, is where transactions are processed. A quick response [QR] code is often used to link a user’s digital wallet, deposit money, and transfer the cryptocurrency that was acquired immediately to the digital wallet.
A crypto exchange app is used by some cryptocurrency ATMs, which enables the redemption of a voucher that was bought with cash. This enables users to fill their accounts, choose which cryptocurrency to buy, and print a voucher that can be redeemed by scanning it with a smartphone app to put money into their wallets.
The majority of crypto ATMs only support one-way transactions; thus, cryptocurrency can only be bought, not sold. Some cryptocurrency ATMs provide two-way transactions, enabling customers to swap cryptocurrency for cash in both directions. A user will scan the QR code on their digital wallet, decide how much cryptocurrency to sell, and then get cash from the ATM once the transaction has been completed. Selling cryptocurrency works similarly to buying it.
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