Yes, there are crypto ATMs. Yes, cryptocurrency is a digital currency. Let’s explain what these are and why they’ve been circulating recently.
The first Bitcoin ATM quietly appeared in public during October 2013. Since then, they’ve progressed slowly into shopping malls, main streets and airports globally. Although they’re still relatively uncommon there are about 34,000 crypto ATMs globally.
Why have ATMs for cryptocurrency since they are all digital? The answer lies in the question. Digital, decentralized currency allows for a further extension of privacy and anonymity through the use of ATMs. While people use ATMs for withdrawals more frequently than for depositing, this is not so much the case for crypto ATMs, as the deposit and withdrawal rates are very similar.
A user can use physical cash, convert it directly into a cryptocurrency of their choice, and then send that to any wallet address they wish. The ATM is made up of a Monitor, QR scanner, bill acceptor slot, and a dispenser. The funds on the crypto ATM are linked to a crypto exchange cloud, designed for sending coins to any type of wallet.
The ability to anonymously purchase crypto through ATMs is beneficial in numerous ways.
• Allows for anonymous wallet activity.
• Access to wallets and funds going in or out when a digital device is compromised.
• Avoid imposed restrictions and sanctions in desperate situations.
• Simple use that has encouraged or sparked further interest in crypto.
^This also works in reverse for withdrawing funds; crypto back into fiat currency.
As of recently, licenses for these ATMs have been required, causing some owners to pack them up or sell them. The UK even went as far as outright banning all 86 of their crypto ATMs, blaming them as an “easy escape” for criminals to channel their money.