By Johnnie Viramontes 
The COVID-19 pandemic has had a significant impact on the use of cryptocurrency ATMs (crypto-ATMs). On the one hand, the desire to minimize physical contact and move towards contactless payments has contributed to the growing interest in cryptocurrencies and related devices. On the other hand, economic instability and changes in the regulatory environment have led to certain fluctuations in their number.
The growth in the number of cryptomates at the beginning of the pandemic
Since the beginning of the pandemic, there has been a noticeable increase in the number of cryptocurrency ATMs. According to Coin ATM Radar, in April 2020, the number of such devices exceeded 7,500 worldwide, a 70% increase from the previous year. This growth is attributed to users’ desire for contactless payment methods and maintaining financial security in the face of uncertainty.
Decrease in the number of crypto machines in 2023
However, 2023 saw the opposite trend. According to Coin ATM Radar, the total number of cryptocurrency ATMs in the world decreased from 37,830 to 33,484 units, a decline of about 11.4% year-over-year. In the U.S., where more than 80% of such devices are concentrated, the decline was 15.4%, from 32,672 to 27,631 ATMs.
Factors affecting the dynamics of crypto machines
The decline in the number of cryptomats is due to several factors.
- Cost-effectiveness: Some operators were unable to ensure the profitability of their devices, which led to their shutdown.
- Regulatory pressure: Tightening legislation and law enforcement pressure, especially against unlicensed cryptomats, contributed to their decline.
- Fraudulent schemes:
The increasing use of cryptomats for fraudulent purposes has also influenced the decision of authorities and operators to shut them down.
Development outlook
Despite the decrease in the number of cryptomats in 2023, there is a positive trend in 2024. From January to April 2024, their number increased from 35,715 to 37,657 units.
Analysts forecast further growth in the cryptocurrency ATM market, expecting it to reach $1.88 billion by 2028, at a compound annual growth rate (CAGR) of 59.2%.
Thus, the COVID-19 pandemic both contributed to the initial growth in the number of cryptocurrency ATMs due to the shift to contactless payments, and led to a decline in subsequent years due to economic and regulatory factors. There is currently a recovery and a positive outlook for the future.