The number of users of crypto assets automated teller machines, the crypto ATMs, jumped 80% in Brazil since the beginning of the year, compared to 2021, even with the downwards scenario of digital assets. The information is from a survey prepared by the operator of services for buying and selling crypto assets via ATM, Coin Cloud.
According to the company, there was also a transaction volume growth of 27% in the second quarter of 2022, compared to the same period last year. Compared to the previous year’s year-to-date accumulated, the increase was almost 110%.
Coin Cloud suggests that this surge is related to the fact that ATMs are some of the few non-custodial solutions in Brazil.
“Many of the big players in Brazil and around the world blocked crypto assets withdrawals during the fall in the asset values”, Isabela Rossa, country manager of Coin Cloud Brazil, told Criptofacil. According to her, this shows that financial freedom is still not fully assured by some companies.
“We value the decision not to have custody and allow our clients to have 100% control over their finances”.
Education also promotes higher use of digital assets
Meanwhile, another aspect highlighted that contributes to the higher volume is people’s familiarization with the assets and ATMs. In Coin Cloud’s analysis, financial education and “word of mouth” have been important in promoting crypto assets and ATMs.
For Isabela, the more people know about this market, the more they are dedicated to educating others and pointing out the possibilities. Other studies by Coin Cloud, according to her, have shown that it is common for a person to go to the machine once with little knowledge and come back later, with more information, to make the crypto asset purchase.
“In this period, between getting to know the machine and making the transaction, the customer researches digital wallets and learns more about crypto assets and how to transact. As this knowledge advances, the greater is the adherence to the ATM and crypto market as a whole”.
Convenience is also relevant for the use of crypto ATMs
However, there are still other essential factors in the scenario, such as security and convenience, since crypto ATMs are usually installed in protected, high-traffic locations, such as inside shopping malls, hotels, and supermarkets.
This is one of the reasons why Coin Cloud looks for commercial premises that are part of people’s daily lives. Currently, the company has 24 crypto ATM units in Brazil, 15 installed in BRMalls and five in the Carrefour Group.
Other ATMs are also available in strategic places, such as the Sheraton Hotel at the Nações Unidas and the Shopping Cidade de São Paulo, in São Paulo; the Continente Shopping Mall in Florianópolis; and the Shell Gas Station in Barra da Tijuca, in Rio de Janeiro. Now in the United States, at least 5,800 ATMs are installed.
It is worth pointing out that Brazil is not the only country to register this increase in the number of clients. According to the forecast made by the American consulting firm Global Market Insights, the crypto asset ATM market should reach a revenue of US$4.5 billion in 2028, surpassing the US$250 million recorded in 2021.