Bitcoin Depot, a leading provider of Bitcoin ATMs globally, has switched its entire network of 7,000 crypto ATMs and kiosks to a software-driven solution powered by BitAccess, making it distinct and unparalleled in its offerings.
By making this move, the company has effectively eliminated the need to pay the annual software licensing fees that had previously been a significant cost, amounting to a total of $3 million per year.
Bitcoin Depot Motive Behind the Software Conversion
Ason Sacco, Bitcoin Depot’s Vice President of BTM Operations clarified the reason for the transition. The transition was to leverage the benefits of preloaded Bitaccess software by replacing the existing hard drive.
This enabled them to efficiently complete the software conversion process without facing potential technical challenges that can arise during field conversion projects.
Additionally, Sacco revealed that they converted the initial 6,000 Bitcoin Depot Bitcoin ATMs to the software-based offering within 10 weeks. As the number of crypto ATMs grows, so does the accessibility and exposure of cryptocurrencies to the general public, leading to an increase in their adoption.
There has been a consistent downward trend in the installation of crypto ATMs worldwide over the last few months. BitAccess became a market leader in the first half of 2022. However, they have experienced a decline in total ATM installations since then.
Coin ATM Radar’s data reveals that BitAccess is presently in third place after Genesis Bytes and Genesis Coin, both of whom have expanded their market share during the same period. The graph depicts that the market share of the other two companies has increased while BitAccess’ market share has decreased.
Regulatory Challenges For Crypto ATMs
The Financial Conduct Authority (FCA) of the United Kingdom stated that all crypto ATMs are unregistered and illegal. At the time, FCA’s executive director of enforcement Mark Steward shared the intention to disrupt unregistered crypto businesses.
Despite the decline in crypto ATM installations in some regions. However, the adoption of cryptocurrencies has led to the development of supporting infrastructures in other parts of the world. Resulting in an increase in the number of crypto ATMs.
When El Salvador opted for Bitcoin as a legal tender President Nayib Bukele announced the country would build a supporting infrastructure of 200 ATMs and 50 branches.
In conclusion, Bitcoin Depot’s software conversion drive is a strategic move aimed at reducing operating costs. While ensuring crypto ATMs remain relevant in the face of declining installations.