Crypto and Bitcoin ATM adoption is highest in countries with large unbanked populations

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(Kitco News) – The United States is the undisputed leader when it comes to the number of Bitcoin ATMs, with 32,591 machines installed across the country, but a recent study by Tradingbrowser indicates that cryptocurrency and Bitcoin ATM adoption is highest in countries that lacks a developed financial infrastructure.

“Countries that have high unbanked populations also have higher rates of cryptocurrency adoption due to high cash payments and Bitcoin ATMs,” wrote Daniel Larsson, senior editor at Tradingbrowser. “If the forecast of installed Bitcoin ATMs continues, these unbanked countries could see exponential growth in adoption.”

A total of 14 countries were included in the study, which gathered information related to the number of Bitcoin ATMs installed, cash payments, unbaked population, cryptocurrency ownership, cryptocurrency ownership percentage, and total population to compare adoption rates.

“It all boils down to how the population is connected to cash payments and bank accounts,” Larsson said.

The countries found to have the highest rate of crypto adoption had the highest rate of unbanked populations and were also the most promising places to install ATMs and promote adoption.

Countries with a high rate of cash payments and unbanked population. Source: Tradingbrowser

Of the countries surveyed, Mexico had the largest percentage of the unbanked population at 60%, and it also ranks third in terms of the number of Bitcoin ATMs installed, with 46. Only Romania and Hong Kong currently host more ATMs than Mexico. A total of 3.4% of Mexican citizens currently own cryptocurrency, which is almost three times the adoption rate of more advanced nations such as Norway and Denmark.

In South Africa, 31% of the population is unbanked, the country has 21 Bitcoin ATMs, and 10% of the population owns some form of cryptocurrency.

When these figures are compared with countries whose unbanked populations are smaller, the differences become apparent.

Countries with a low rate of cash payments and unmanned population. Source: Tradingbrowser

The differences are particularly strong in Nordic countries such as Sweden, Denmark and Finland, which have the lowest percentage of cash payments (1-2%) while almost 100% of the population is connected to the traditional banking system.

Countries where cash payments range from 1-2% and unoccupied populations from 0% to 1% – including Sweden, Denmark, Norway and New Zealand – have no Bitcoin ATMs installed. “These countries also have a much lower adoption rate,” Larsson observed.

“We can draw many conclusions based on these findings, but the main driver of the high adoption rates in highly unbanked nations is the number of Bitcoin ATMs installed,” Larsson said. “In many cases, cryptocurrency has proven to be a viable option where Bitcoin ATMs are installed.”

In areas without established banking infrastructure, the ability to use ATMs to trade cryptocurrency for cash, or from cash to cryptocurrency, is a feature that is impossible without access to traditional bank or credit cards.

Based on these findings, Larsson speculates that the reason that crypto ownership is lower in countries with established financial infrastructure has to do with the fact that there is no need for the population in these countries to use cryptocurrencies.

The only exception in the study was Hong Kong, which has a highly developed financial system and is considered a financial hub and testing ground for Chinese politicians. Hong Kong ranked second overall in the number of Bitcoin ATMs installed, with 147, while Romania came in first with 156.

“The high frequency of cash payments and Bitcoin ATMs in developing countries shows the growth of alternative financing solutions such as Bitcoin, which provide a fast, secure and efficient way to transact outside the traditional banking system,” said Larsson. “It’s safe to say that more Bitcoin ATMs are likely to be installed in highly unbanked countries as the positive trend towards cryptocurrencies continues.”

While Bitcoin ATMs are not solely responsible for driving adoption in unbanked regions of the world, there is clearly a correlation, Larsson said. “The study shows that cash and Bitcoin ATMs are the two main factors driving the use of cryptocurrencies right now, and it’s obvious which parts of the world are in the driver’s seat.”

It remains to be seen how the trend will develop going forward, especially amid the spreading banking contagion now affecting banks in Europe, including Credit Suisse.

“Only time will tell if the trend of these ATMs and the use of cryptocurrency will continue in countries where cash is currently king,” Larsson said. “Until then, we can’t look past the obvious, which is that right now, unbanked countries are beating cashless countries in the race to full cryptocurrency adoption.”