The emergence of the world of Bitcoin ATM
In the report published on March 14, 2023 by Trading Browser, various aspects of Bitcoin ATM adoption are analyzed.
In particular, it highlights which nations have the highest usage rates and why, as well as which countries have almost zero presence of Bitcoin ATMs.
The report divides into three main points:
- Countries with a high percentage of unbanked populations adopt cryptocurrencies more than other countries, as these people often use cash payments and Bitcoin ATMs. If the installation of Bitcoin ATMs continues to increase, these countries could experience rapid growth in cryptocurrency usage.
- The most surprising and important factor driving the use of cryptocurrency in countries with high percentages of unbanked populations is the large number of Bitcoin ATMs and the alternative financial solution offered by blockchain technology.
- Cashless countries, such as Sweden, Denmark, Norway and New Zealand, have a high percentage of cashless transactions, and almost 100% of the population has a bank account. However, they do not have Bitcoin ATMs installed and their percentage of cryptocurrency holders is lower than developing countries.
Bitcoin ATMs are present on a large scale in developing countries
Thousands of Bitcoin ATMs have been installed worldwide to promote the use of cryptocurrency. Currently, the US leads the way with 32,591 machines installed across the country.
However, there are significant differences in adoption rates between countries where Bitcoin ATMs are installed and those where they are not.
Some countries have been quicker to embrace the cryptocurrency trend due to the need for an alternative financial solution. Today we present a comparison and cross-reference of essential data to examine cryptocurrency adoption rates in unbanked and cashless countries.
The following charts show the number of Bitcoin ATMs, cash payments, unbanked population, cryptocurrency ownership, percentage of cryptocurrency ownership, and total population in 14 countries with different usage rates.
Bitcoin ATM Adoption Levels
Ultimately, the level of adoption depends on how the population is connected to cash payments and bank accounts.
Clearly, countries with a high percentage of the unbanked population have a higher rate of cryptocurrency adoption. With the expected rise in Bitcoin ATMs, we could see exponential growth in cryptocurrency usage.
For example, Mexico has a population where 60% of people do not have access to bank accounts, but it is second on the list with 46 Bitcoin ATMs.
Surprisingly, 3.4% of Mexico’s population own cryptocurrencies, which is almost three times as many as more developed countries such as Norway and Denmark.
Similarly, South Africa has 31% of the population unbanked, but 21 Bitcoin ATMs are installed and 10% of the population own some form of cryptocurrency.
These results highlight that the determining factor for high adoption rates in highly unbanked countries is the number of Bitcoin ATMs installed.
Cryptocurrencies have proven to be a viable option where ATMs are installed, enabling exchanges between cash and cryptocurrency that would be impossible without traditional banking or credit card access.
In contrast, Nordic countries such as Sweden, Denmark and Finland have a record low percentage of cash payments (1%) and almost 100% of the population is linked to traditional banks.
The reasons for low bank adoption
The data provided highlights the high proportion of unbanked population in some regions of the world, but it is important to provide further context and reasons for this situation.
In many unbanked countries, economic or social factors prevent access to financial services. For example, opening and maintaining a bank account can be expensive in developing countries, creating barriers for people.
Infrastructure may also be insufficient to support widespread banking, and cultural attitudes towards money and trust in financial institutions may also be a factor.
As cryptocurrencies provide an alternative means of payment, developing countries often use blockchain technology as a replacement for traditional money transfers.
Poverty is another significant problem in highly unbanked countries, where banks often require account holders to maintain a minimum balance.
Trust is also a decisive factor in cashless countries, and underpins the functionality of the traditional financial system. However, confidence has fallen in many nations with high poverty rates.
Government policies can significantly affect cryptocurrency adoption rates.
Countries with less stringent cryptocurrency regulations tend to have higher adoption rates. In addition, technological advances have made it easier to use cryptocurrencies, with the development of more user-friendly wallets and decentralized exchanges.
Cultural attitudes towards money also play an important role in the adoption rate. Developing countries tend to have a poor relationship with their national currencies due to high inflation rates, which can make cryptocurrencies a more attractive option.
Overall, the factors that contribute to cryptocurrency adoption rates are many and complex, including economic, social, technological, and cultural factors.