How Cash-Based Crypto Can Unlock Financial Inclusion for 1.4 Billion Unbanked People
Cash-Based Crypto: The Missing Key to Global Financial Inclusion
By Alexander Guseff, Founder and CEO of Tectum
For over a decade, crypto companies have focused on digital wallets, apps, and exchanges, promising to bring the unbanked into the financial fold. But the reality paints a different picture: 1.4 billion people remain unbanked, and global crypto adoption still hovers below 8%.
Despite bold visions of decentralized access, the crypto industry continues to overlook the billions who depend on cash for daily life. In regions like Africa, South Asia, and Latin America, cash is not just common—it’s a necessity.
Why the World Still Runs on Cash
In many developing economies, bank branches are rare, smartphone access is limited, and digital literacy remains low. Expecting people to jump straight into app-based crypto is unrealistic. The current system is built for the digitally privileged, not the majority who operate with cash.
Yet, in every region where offline crypto solutions have been tried, the response has been positive. People are willing to embrace crypto—but only if it fits their reality.
The Numbers Speak Volumes
-
In Romania, 76% of transactions are still in cash, but crypto adoption has reached 14%.
-
In Morocco, despite a crypto ban, 16% of the population uses crypto while cash dominates.
-
India sees 63% of its transactions in cash, yet it’s among the most crypto-curious nations.
-
In Egypt, 72% of payments rely on cash, and only 3% use crypto—due largely to poor digital infrastructure.
The pattern is clear: demand exists, but the crypto industry’s approach is flawed.
What’s Really Holding Crypto Back?
It’s not a lack of interest. It’s the rigid assumption that digital apps are the only gateway to crypto. That mindset ignores billions of people in cash-driven economies.
A Smarter, More Inclusive Path
The solution lies not in replacing cash, but integrating with it. Innovations like blockchain-linked paper banknotes, QR-code vouchers, and SMS-based transfers can make crypto accessible without needing apps or even internet access.
Inspired by M-Pesa’s Success
Africa’s M-Pesa proves this model works. With over 66 million users, it allows people to exchange cash for digital value using agent-based systems—no bank account needed.
Crypto can replicate and improve this model. Services like Machankura, which enables Bitcoin transfers via SMS, are already seeing traction across Africa with over 13,600 users.
“We don’t need another app. We need systems that work on feature phones, via SMS, at corner shops.”
Security, Trust, and Scale
Physical crypto assets raise legitimate security concerns, but these can be mitigated through trained agents, oversight, and blockchain validation. What’s harder to justify is excluding billions from the digital economy.
Even past initiatives like CoinText, which spread to 50 countries, didn’t fail due to lack of interest—but because the industry wasn’t ready to support them.
Today, new solutions like Text BSV are proving that SMS-based P2P crypto payments can work—on any phone, without apps, passwords, or even a need to understand Bitcoin.
A $50 Billion Opportunity Hiding in Plain Sight
Markets with high cash usage but growing crypto interest represent a massive untapped opportunity. If crypto adoption in cash-heavy Romania can hit 14%, imagine scaling that globally.
-
Cash-based crypto agents could generate $10 billion in revenue by 2030.
-
The informal cash economy moves trillions annually—crypto can plug directly into that stream.
-
Even crypto exchanges could benefit by bridging digital and physical financial systems.
Regulators may raise concerns, but the potential for $50 billion in new economic activity is a compelling incentive to co-create workable solutions, not resist them.
🔁 Bridging the Divide: The Future of Financial Access
Crypto was meant to revolutionize finance, but it’s still out of reach for most. Waiting for cash economies to “catch up” isn’t just slow—it’s ineffective.
The way forward is to meet people where they are:
-
Use telecom partnerships to build offline networks.
-
Roll out cash-compatible crypto products.
-
Build a bridge from the old economy to the new one.
Share ThisCash-based crypto isn’t a step backward. It’s the bridge to billions.
