Can Bitcoin ATMs be adopted by unbanked countries?
By Puja Sharma
Thousands of Bitcoin ATMs have been installed across the globe to help push cryptocurrency adoption in the right direction and right now the United States is leading the race with 32,591 machines installed throughout the country. However, there are some surprising contrasts in the adoption rate between countries where Bitcoin ATMs have been installed and where there is a complete absence of these machines. Some countries have been much faster to accept and implement the cryptocurrency phenomenon than others due to the need for another financial solution.
There are some surprising data on Bitcoin ATMs and adoption rates between unbanked vs cashless countries,
It all boils down to how the population is connected to cash payments and bank accounts. Mexico has a population where a staggering 60% of the people don’t have access to a bank account, and yet it has the second-highest score on our list with 46 Bitcoin ATMs. Another surprising fact is that 3.4% of the Mexican population owns cryptocurrency which nearly triples the adoption rate of more developed nations such as Norway and Denmark.
Similarly, South Africa has a 31% of its population unbanked, although 21 Bitcoin ATMs have been installed so far, and 10% of its population owns some form of cryptocurrency. We can draw many conclusions based on these findings but the most significant driver for the high adoption rates in highly unbanked nations is the number of Bitcoin ATMs that have been installed.
In many cases, cryptocurrency is proving to be a viable option where Bitcoin ATMs have been installed.
Understanding the root causes of unbanked populations
Many unbanked nations lack financial services due to economical or social factors. For example, in developing countries, the cost of opening a bank account and also maintaining it can be pretty high which puts up barriers for the population. There may also be a lack of infrastructure to support widespread banking services and in some cases, cultural perspectives towards money in general and trust in financial institutions might also play a role.
Since cryptocurrency can be used as another means of payment, developing nations tend to substitute what would be the traditional way of sending money by using the blockchain. Poverty is another aspect that is causing great problems for nations that are highly unbanked whereas many banks require bank account holders to maintain a minimum balance.
Another factor is trust, which plays a major role in cashless countries and is the backbone of why the traditional financial system works so well. This trust is diminished in most countries with high poverty rates.
Factors impacting cryptocurrency adoption
Other factors that also contribute to the ease of use of cryptocurrency are government policies which can have a significant impact on adoption rates. Many of the countries where cryptocurrency is readily available through Bitcoin ATMs have much less tightened regulations against crypto as a method for transacting.
This helps unbanked populations buy, sell, and use cryptocurrency in their everyday life. The more technology advances the easier it gets to use cryptocurrency. For example, recent developments of more user-friendly wallets and decentralized exchanges can be a contributing factor to why cryptocurrencies are more accessible to people.
Cultural attitudes towards money, in general, also play a big role in adoption rates. Most developing nations have poor relationships with currencies since their own national currencies tend to be unstable due to high inflation rates.
Beyond the presented data
Our data only includes Bitcoin ATMs as a dominant factor for the growth and adoption of cryptocurrency.
The data in the tables do not show all the other thousands of cryptocurrencies that are in circulation and how they affect the adoption rate. Another factor is time. The ATMs are used to trade cryptocurrency for cash, or from cash to cryptocurrency, something that would previously have been impossible for someone without access to traditional banking or credit cards.
In contrast, nordic countries like Sweden, Denmark, and Finland have a record-low percentage of cash payments (1%), and nearly 100% of their populations are connected to the traditional banking system.
Key highlights
- Countries that have high rates of unbanked populations also have higher rates of cryptocurrency adoption due to high cash payments and Bitcoin ATMs. If the projection of installed Bitcoin ATMs continues, these unbanked countries could see exponential growth in adoption.
- The most surprising and significant driver for the high adoption rates in highly unbanked nations is the alternative financial solution that Bitcoin ATMs and blockchain offers.
- Cashless countries like Sweden, Denmark, Norway, and New Zealand have a record-low percentage of cash payments and nearly 100% of their populations are connected to a bank account. These countries have no installed Bitcoin ATMs and have lower cryptocurrency ownership percentages than developing nations.
IBSi FinTech Journal

- Most trusted FinTech journal since 1991
- Digital monthly issue
- 60+ pages of research, analysis, interviews, opinions, and rankings
- Global coverage
Other Related News
Related Reports

Sales League Table Report 2024
Know More
Global Digital Banking Vendor & Landscape Report Q4 2024
Know More
NextGen WealthTech: The Trends To Shape The Future Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More