Bitcoin Depot Begins Software Conversion Of Crypto ATMs To Cut Operating Costs
In recent months, the installation of cryptocurrency ATMs has been on a steady decline across the globe. Some ATMs have been deactivated and out of operation due to revenue decline, while others, like that of Bitcoin Depot, have been converted into software.
7,000 Crypto ATMs Converted Into Software
According to reports, Bitcoin Depot has converted its 7,000 cryptocurrency automated teller machines (ATMs) and kiosks into a software-based system. The new system will be powered by the network’s BitAccess, the software suite controlling the world’s Bitcoin ATM operations.
The software conversion project started after Bitcoin Depot acquired majority equity in BitAccess last November. Bitcoin Depot also disclosed its plan to go public months before the recent project via an $885 million deal with a special-purpose acquisition company (SPAC).
Furthermore, the software conversion of the ATMs will integrate Bitcoin Depot’s software and hardware features and removes the yearly software licensing fees. The licensing fees accounted for almost $3 million in annual operation costs for the firm’s crypto ATMs.
In the first quarter of last year, BitAccess emerged as a market leader but started seeing a steady decline in ATM installation services since July 2022, per multiple reports. Jason Sacco, Bitcoin Depot’s vice president of BTM operations, revealed the reasons behind the move stating that the firm swapped out the existing hard drive with a preloaded one containing the BitAccess software.
The executive also stated that the first 6,000 crypto ATMs were converted to software in 10 weeks. Sacco further noted that the increase in Bitcoin ATMs is proportional to the amount of crypto exposure for the public.
Hence, when El Salvador made Bitcoin a legal tender, President Nayib Bukele noted that the country plans to build infrastructures to support the move with 200 ATMs and 50 branches nationwide.
No Operational License
Meanwhile, the UK’s Financial Conduct Authority (FCA) has claimed that all crypto ATMs operating in the United Kingdom are unregistered. Thus, the FCA’s director of enforcement, Mark Steward, disclosed the regulator’s intention to crack down on crypto businesses (including crypto ATMs) illegally operating in the country.
Since then, the UK has scrutinized the crypto space extensively, with fines and charges slammed against erring crypto trading platforms. According to reports, the global Bitcoin ATM network, known for its yearly addition of thousands of crypto ATMs since 2021, only recorded an addition of 94 Bitcoin ATMs since July 2022.
Last year’s crypto market bear trend hindered various initiatives that aid the growth of the digital asset ecosystem. Thus, efforts to install new crypto ATMs dipped significantly across different countries that once drove this initiative.
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