Canadian firm targets country towns in crypto ATM explosion

As banks disappear from Australian country towns, crypto ATMs are proving popular in spots you may not expect.

A provider of the ever-increasing crypto ATMs in Australia has shared illuminating data about which regional centres have the biggest appetite for the blockchain tech.

Canadian firm Localcoin has more than 400 crypto ATMs across Australia – about one-third of the total national machines – and has added 36 per month this year.

The company notes Wodonga, Wollongong and Ballarat as having machines that are particularly busy.

Localcoin has more than 400 crypto ATMs across Australia. Picture: Andrew Henshaw

The company’s lone Wagga Wagga machine, sitting in a servo on the Sturt Highway, is not used as frequently, but the average transaction amount is elevated, Localcoin chief executive Tristan Fong said.

“In Wagga Wagga, we’re witnessing a growing appetite for cryptocurrency. While current data shows lower overall usage of our ATMs, the transaction amounts are notably high when they are used.”

Crypto ATMs have proliferated faster in Australia than anywhere else in the world since the start of 2023, increasing 16-fold to more than 1200. The US has the most with more than 35,000 and Canada the second most with about 3000.

The number of crypto ATMs in Australia grows every month. Picture: Coin ATM Radar

People can put cash into the machines and get crypto to their digital wallet or sell crypto and get cash out.

As a whole, the Australian machines process a host of the major cryptocurrencies and their spin-offs, including bitcoin and Lightning BTC, Ether, Ripple’s coin XRP and Dogecoin.

Looking across the gamut of Australian providers, there are 15 ATMs in western Victoria, four in the northern expanses of Western Australia outside Perth and two in the WA gold mining town of Kalgoorlie.

The northern half of Queensland has 36, and Darwin has seven machines, data from Coin ATM Radar shows.

Mr Fong said putting crypto ATMs outside the capital cities was their gap to fill.

“We noticed that access to cryptocurrency was limited in Australia, particularly in regional and smaller metropolitan cities outside of the largest CBDs,” Mr Fong said.

“We believe it’s essential for these communities to have the opportunity to invest in crypto. Localcoin is the vessel that ensures everyone in Australia can easily access cryptocurrency.”

The Australian Taxation Office estimates 700,000 to 1.2 million people and entities will declare crypto assets in their most recent tax returns.

Localcoin says 72 per cent of its users are first-time crypto buyers, pointing to a rise in use among the general public.

Canadian firm Localcoin says putting crypto ATMs outside of the capital cities is proving advantageous. Picture: Andrew Henshaw

As well as the cities mentioned above, Localcoin has targeted Cairns and Shepparton. The company has four ATMs in Newcastle, eight in Tasmania and 32 in Perth that are spread across the wider suburban area.

The largest and most popular cryptocurrency by market cap, bitcoin, has a scarcity factor attached to it, like gold.

Investors say the prospect of a second Donald Trump presidency is lifting bitcoin prices, while Vice President Kamala Harris’ position is creating less buoyancy in the market.

Crypto prices ride moves on the US markets, as does the ASX. Picture: Jeremy Piper

Last week, bitcoin posted a 7.97 per cent weekly gain, nearing $US64,100 ($A93,800), its highest level since late August.

Zerocap chief investment officer Jonathan de Wet said the Federal Reserve cutting rates by half a percentage point last week spurred on crypto.

“The Nasdaq and S&P equity indexes saw all-time highs, as did gold, and BTCUSD is on the way to $US65,000,” he said.

“We’ve now broken the technical descending wedge and are heading higher with a little gusto.”

Originally published as Canadian firm targets country towns in crypto ATM explosion