Source: Cointelegraph Original: "{title}"

Opinion by Alexander Guseff, Founder and CEO of Tectum

Cryptocurrency companies have been vigorously promoting digital wallets and exchange applications for years, firmly believing they will bring financial inclusion to the world. The reality is: there are still 1.4 billion people without bank accounts, and the adoption rate of cryptocurrency barely exceeds 8%. Despite discussions about decentralization and accessibility, the industry continues to overlook the billions who rely on cash in their daily lives.

In developing economies in Africa, South Asia, and Latin America, cash is not only dominant but essential. Banking services are scarce, smartphone penetration is low, and digital literacy remains a barrier. It is unrealistic to expect these individuals to join cryptocurrency through processes designed for tech-savvy, internet-connected users.

However, whenever offline cryptocurrency solutions are tested, their adoption rates soar. The message is clear: people want to use cryptocurrency, but they need a way to access it that fits their real-life situations.

While some believe that digital finance will eventually replace cash, this is not the case. Take Romania, for example. Notably, 76% of transactions there are still cash-based, yet the adoption rate of cryptocurrency has reached 14%. In Morocco, despite the growth of digital payments, cash remains king; however, 16% of the population has found ways to use cryptocurrency—despite an official ban on its use.

In Egypt, about 72% of payments rely on cash, but the adoption rate of cryptocurrency is only 3%, primarily due to limited digital infrastructure. Even in tech-enthusiastic India, 63% of transactions still use cash.

In these markets, the pattern is evident: people want to use cryptocurrency, but the industry has not provided them with practical ways to integrate it into everyday transactions.

The barriers to cryptocurrency adoption go far beyond technology. Government regulations, economic conditions, and local financial habits all play a role.

The biggest flaw in cryptocurrency is not a lack of demand. It is the assumption that digital wallets and banking applications are the only viable entry points. This notion ignores the billions of people still living in cash-driven economies.

Cryptocurrency should adapt to the environment rather than impose a purely digital model on cash-intensive areas. Physical cash linked to blockchain, QR code vouchers, and SMS-based transfers can allow cryptocurrency to enter the real economy in a way that makes sense to those already using cash.

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This idea is not as radical as it sounds. Africa's M-Pesa has over 66.2 million active users, adopting a simple agent model that allows people to exchange cash for digital value without a bank account. A similar approach can be applied to cryptocurrency, enabling users to transact cash linked to the blockchain with local vendors.

This situation has already emerged on a small scale. For example, Machankura has facilitated Bitcoin transactions through basic mobile networks, attracting over 13,600 users in Africa. In this region, almost all digital payments rely on simple mobile codes rather than smartphone applications, making such solutions far more feasible than pushing another exchange-based onboarding process.

Security issues with tangible assets will always arise, but trained agents and proper oversight can mitigate risks. More importantly, this is a solvable problem, whereas excluding billions from the financial system is not.

Many in the cryptocurrency space believe that paper-based solutions are outdated. The idea that everything must be digitized overlooks how financial systems have developed. People need time to transition and systems that fit their current lifestyles.

CoinText was an SMS-based cryptocurrency transfer service that expanded to 50 countries before shutting down—not because the idea was unworkable, but because the industry was not ready to support it.

The rigid thinking that initially dismissed SMS transfers now hinders its application in cash-heavy economies. A new service called "Text BSV" has emerged, enabling seamless peer-to-peer (P2P) payments via SMS without the need to download an app, register, or have prior knowledge of Bitcoin (BTC). It works on any phone, even non-smartphones.

If the adoption rate of cryptocurrency remains at 8%, it is not because people do not want it. It is because the industry insists on using a method that does not work for most people in the world.

The financial advantages of integrating cryptocurrency into cash economies are enormous. If cash reliance in Romania is as high as 76% and it can achieve a 14% adoption rate, similar markets will follow suit. As cryptocurrency enters economies with trillions of dollars in informal cash transactions each year, this represents a $50 billion opportunity globally.

By 2030, cash-to-cryptocurrency agent networks could generate $10 billion in revenue, mirroring the success of mobile payment platforms like M-Pesa. Even cryptocurrency exchanges could benefit from these underserved markets, bridging the gap between the digital economy and cash economy.

For transparency reasons, regulators may hesitate about paper-based cryptocurrency, but the scale of financial inclusion is hard to ignore. If governments see the potential for $50 billion in new economic activity, they are more likely to seek solutions rather than impede progress.

Cryptocurrency was supposed to revolutionize financial services, but for billions, it remains out of reach. Expecting these communities to completely abandon cash and directly use digital wallets is unrealistic and a poor strategy.

The solution is not to wait for these economies to modernize. It is to meet people’s needs. This means trying cash-compatible solutions, collaborating with telecom operators to launch agent-based models that allow people to use cryptocurrency in familiar ways.

If the industry does not make these changes, the current stagnation in adoption will become permanent. Paper-based cryptocurrency could become a bridge connecting billions to future finance rather than a step backward.

Opinion by: Alexander Guseff, Founder and CEO of Tectum.

This article is for general information purposes only and is not intended and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed in this article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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