Opinion: Alexander Guseff, Founder and CEO of Tectum
Crypto companies have spent years pushing digital wallets and exchange apps. The reality is: 1.4 billion people remain banks, with almost no more than 8% of crypto adoptions. With all the stories about decentralization and accessibility, the industry continues to overlook billions who rely on cash for their daily lives.
In developing countries in Africa, South Asia and Latin America, cash is more than just dominant. That is essential. Banking services are sparse, smartphone penetration is low, and digital literacy remains a hurdle. It is unrealistic to expect these groups to be mounted through a process designed for high-tech savvy users with internet access.
However, whenever an offline crypto solution was tested, adoption jumped. The message is clear. People are happy to use Crypto, but they need a real-world access method.
The global reality of cash dependency
Despite the assumption that digital finance will ultimately replace cash, that is not what the numbers show. Take Romania. In particular, 76% of transactions are still on a cash basis, while crypto adoption reached 14%. In Morocco, despite the growth of digital payments, cash remains king, but 16% of the population have found a way to use crypto.
After that, there is Egypt where around 72% of payments rely on cash, but mainly because of limited digital infrastructure, crypto adoption is at around 3%. Even in India, where crypto enthusiasm is high, 63% of transactions are generated in cash.
The patterns are clear across these markets. People want to use crypto, but the industry doesn't give them a practical way to integrate it into everyday transactions.
The real problem with Crypto
The barriers to the adoption of crypto far exceed technology. Government regulations, economic situations, and local financial habits all play a role.
The biggest flaw in Crypto is not the lack of demand. It's assuming that digital wallets and banking apps are the only viable entry points. The idea ignores billions of people still operating in a cash-driven economy.
A more practical approach
Instead of forcing a digital-only model in cash-heavy regions, crypto must adapt. Blockchain-linked physical bills, QR-coded vouchers, and SMS-based transfers can lead Crypto into the real economy in ways that make sense for people who are already using cash.
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The idea is not as radical as it sounds. With over 66.2 million active users, Africa's M-PESA operates on a simple agent-based model that allows you to exchange cash for digital value without the need for a bank account. The same approach works with cryptographic information, allowing users to trade blockchain-linked cash notes at local vendors.
It's already happening in a small pocket. For example, Machankura enables Bitcoin transactions over a basic mobile network, attracting over 13,600 users in Africa. In regions where almost all digital payments rely on simple mobile code rather than smartphone apps, such solutions are far more viable than pushing another exchange-based onboarding process.
Security concerns always come up with physical assets, but trained agents and proper monitoring can reduce risk. More importantly, it is a problem that can be solved. That's not the billions of people from the financial system.
Digital purists get it wrong
Many Crypto Space dismiss paper-based solutions as outdated. The idea that everything must be digital ignores how the financial system evolves. People need time and systems to move to suit their current lifestyle.
Cointext, an SMS-based crypto transfer service, spread to 50 countries before it closed. Not because the idea didn't work, but because the industry wasn't ready to support it.
The same strict thinking that rejected SMS transfers is hindering adoption in a cash-heavy economy. A new service called Text BSV has arrived, allowing for seamless peer-to-peer (P2P) payments for Satoshis via SMS. No need to download, register, or prior knowledge of the Bitcoin (BTC) app. It works on any phone or non-smartphone.
If crypto adoption remains stalled to 8%, that's not because people don't want it. This is probably because the industry has insisted on an approach that doesn't work in most of the world.
$500 billion opportunity
The financial benefits of integrating crypto into the cash economy are enormous. A similar market could continue if a cash trust of 76% can reach 14% adoption in Romania. That leads to $500 billion in opportunities worldwide as crypto enters an economy where trillions of dollars move through informal cash transactions each year.
Cash-to-Crypto's network of agents could generate $100 billion in revenue by 2030, reflecting the success of mobile money platforms such as M-PESA. Even crypto exchanges will benefit from using these unserved markets to close the gap between the digital and cash economy.
Regulators may hesitate to write paper-based cryptography due to concerns about transparency, but financial inclusion on this scale is difficult to ignore. If the government sees $50 billion in new economic activity, they are more likely to work towards a solution rather than stopping progress.
Cash meets crypto
Crypto was supposed to revolutionize financial access, but remains out of reach for billions of people. It's an unrealistic and bad strategy to expect these communities to abandon their cash completely and jump straight into a digital wallet.
The solution is not to wait for these economies to modernize. It's about meeting people where they are. This means experimenting with cash-compatible solutions, partnering with telecom providers, and deploying an agent-based model that allows you to use crypto in a familiar way.
If the industry does not make these changes, current adoption stalls will be permanent. Instead of taking a step back, paper-based cryptography could be the bridge that ultimately connects billions of people to the financial future.
Opinion: Alexander Guseff, founder and CEO of Tectum.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph's views and opinions.
