On 18.06.2024, Madrid exceeded 50 Bitcoin ATMs & Spain exceeded 300 Bitcoin ATMs

As of 18th of June 2024, there is over 300 machines in Spain and over 50 machines in Madrid. What does it mean? What are they and how do they work? And why sometimes there are such long queues to these ATMs? Let's see!‍

At first glance, crypto ATMs blend into their surroundings, often tucked away in shopping malls, resembling slot machines more than traditional bank ATMs. At the central Bitcoin ATM locations in Madrid, a peculiar sign in uppercase letters warns: “Important: if you were instructed by someone to come here to pay for package, do not do it! You are being scammed.” Such unexpected alerts greet potential investors, who learn from the screen that the transaction they are about to make is unregulated. Despite these warnings, queues of eager users form, especially as closing time approaches.

Globally, according to Coin ATM Radar, 40,000 crypto ATMs exist, facilitating both the purchase and sale of cryptocurrencies. However, the majority of transactions involve selling. These machines aim to simplify the complex world of cryptoassets for everyday people, often those with limited financial knowledge and lower incomes. The main draws are quick cash access and, sometimes, anonymity.

Looking for Bitcoin ATMs in Madrid

Sandra, a 35-year-old from Madrid, had been searching for a crypto ATM for four days, moving from a squatted house in Barajas to a shopping center in Salamanca out of necessity. "I need money, the police came to my place this morning," she explains. Sandra’s need for quick cash is driven not by Bitcoin's recent surge past $69,000 but by the desire to profit from Worldcoin, a new crypto project by OpenAI founder Sam Altman, valued at $10 billion and up 337% since 2023.

The arrangement is simple: users provide biometric data in exchange for redeemable cryptocurrencies or tokens from Worldcoin, which uses the data for AI development. Payments vary, with 10 tokens for iris capture, a biweekly subscription (currently three tokens), and a bonus of 10 tokens for each referred user (up to five referrals). Even without understanding Bitcoin, users see that the cryptocurrency's value fluctuates, currently making the image transfer worth at least 70 euros. Worldcoin has four million users globally.

On Wednesday, the Spanish Data Protection Agency (AEPD) ordered a halt to Worldcoin's operations and data collection. Tools For Humanity, the technology developer, has 72 hours to cease using its 'Orb' devices, suspending operations for three months. Following the suspension, Worldcoin’s value dropped by 10%.

The most popular Bitcoin ATM location in Madrid

At the most popular Bitcoin ATM location in Madrid, C. de Lazaga, 7, Tetuán, 28020 Madrid, Spain, about a dozen people wait to convert their Worldcoin tokens. Unconcerned with Bitcoin’s valuation nearing $1.5 trillion, these individuals—mostly immigrants or those seeking to capitalize on the latest trend—are there for various personal reasons. "Some are paying their rent with this," they admit. Many are unaware of the commissions until mid-transaction. One woman didn’t realize she needed to own cryptocurrencies to get cash.

"Our customers usually lack familiarity with cryptocurrencies. We assist them," says Alejandro Montoya, CEO of GBTC Finance, noting that commissions in Spain’s 19 branches fluctuate with demand.

José Ruiz, a 51-year-old embalmer earning €1,300 monthly, is redeeming Worldcoin cryptocurrencies for the first time based on a friend's suggestion. When questioned about the lack of regulation and data protection warnings, he shrugs off concerns, saying, "Don’t look a gift horse in the mouth."

Fees at Bitcoin ATMs in Madrid

Crypto ATMs charge higher fees than traditional banks and online crypto platforms. For instance, GBTC charges less than 7% for buying Bitcoin and 8% for selling it. BitBase’s fees are higher, at 10% for transactions between 20 and 1,000 euros and 8% for amounts above 1,000 euros. They recommend bank transfers as the cheapest method at 5%, though some banks, like Caixabank, often refuse. For redeeming Worldcoin tokens, fees soar to 25%, reflecting the currency’s growing popularity.

Both GBTC and BitBase require a bank account and ID for ATM transactions, in line with the upcoming MICA regulation. However, Shitcoins Club operates differently, allowing withdrawals up to 990 euros without stringent checks and during discounts, around 2.5% commission. Shitcoins Club, a company with an anarcho-capitalist stance, refuses to distribute Worldcoin, criticizing it for buying personal data, according to Aitor de Linares Serrano, their marketing manager.